This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.
I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program
Additionally, you can now get access to what I consider to be the best stock options trading alert service.
Of course I am biased and with a success rate fluctuating between 68.2% and 72.4% it is hard not to be biased.
If you do want to follow along with what I am doing every day you can get access to my dail stock market report
Until next time
happy trading
Following on from the Fibonacci basics article we can now start to use a structured approach to identify and trade with Fib levels.
Trading Fib levels is pretty much the same as trading a pullback but you are using fib levels to determine where and when you you will get into a trade and place your stop loss level as well as identify your target levels.
For short you are looking for(reverse rules for longs;
In the charts above you can see the application of the strategy in real time.
Identify a thrust move (between the first red and blue arrow). Your charting software will usually calculate the Fib retracement levels for you.
In this example, you can see a move up to the 61% Fib retracement level and shortly after a bar closed below the 50% Fib Retracement level. This is the trigger bar for the entry. The stop loss goes past the event that caused the trade. This is above the highest point that price retraced to before creating the trigger bar (the second red arrow).
The targets are the low of the previous move down (first blue arrow) I usually place my target just above this support zone. The second target is a 100% measured move using the fib extension tool. The height of the pattern (the distance between the first red and blue arrow) added to the start of the next move down (the second red arrow).
That's it, simple!
Intraday considerations.
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