My favourite Fibonacci retracement strategy involves two specific Fibonacci retracements. I understand that Fibonacci setup so well that when I see it, I connect to it straightway. I mean, we understand each other like two best friends. Though, some may disagree with me, I consider myself as a Fibonacci trader with an eagle eye. Alright, I know what you are thinking.
Cheer up a bit.
Usually, the only time things begin to work for one is when one finally fully understands them.
For example, a business person who understands well his business is more likely to succeed
than those who do not. The reason why I have said that is because I am talking about my own favourite Fibonacci trading strategy. Please stay with me.
Now, I will be giving it to you today. However, to make it work for you, you must fully understand it. It will not work for you until you understand it. If you start using it with a demo account, and it did not work, go back to it as many times as you can until you fully
understand it in and out.
Please note that I am not saying to know about it, but to understand it.
That means to comprehend why it works or fails. It also means knowing when
it will work, and recognising the good ones. It means being able to turn it upside down,
and interpret it even if it becomes complex or hidden. Spot the distortions, and most importantly know how and when to use it. Alright that is it.
A Fibonacci trader who wants to master my favourite Fibonacci trading strategy must first
read everything at the following web pages:
5/ watch in full the video in the end of this page.
What are we looking for?
1/ ABCD chart pattern that is completed.
2/ A pullback to 38.2% Fibonacci retracement of A to D.
3/ That 38.2% Fibonacci retracement of AD must coincide with the 78.6% Fibonacci retracement of CD.
Note that sometimes, it may not coincide exactly with it, but will be near it.
4/ If the common sense trend line of the pullback (bullish ABCD) or rally (bearish ABCD) is broken, one has a high probability trade setup.
Use the top-down trading method to enter the trade like a pro. Manage and control the risk
appropriately. As always use a demo account to learn to master it before going live.
Please grab a seat, put on your headset and watch in full this tutorial now.