My Fibonacci Forex Trading System

My Fibonacci Forex Trading System

Shares a free part time forex swing trading method called Forex Sailing that makes fibonacci swing trading simple!
If you read my previous post shows how to plot Fibonacci Forex indicator on your chart, you will understand the power of 0.382, 0.500 and 0.618 Fibonacci level violations. These levels are breaking areas where price is away from them. What makes it so popular Fibonacci trading system because of its ability to predict subsequent movement in price is through the extension.

Here's how extension works:

1) When you see the price considering the .618 level and then confront him, there is a high chance that prices will expand the 1.618 level.

2) When you see the price thinking level until 0500 and then opposed it, there is a high probability that you will see the price extends to 1500 levels, even 1.618.

3) If you see the price thinking the .382 level and then to resist it, you'll probably see the price spread at 1.272 level and then moved to the 1.382 level.

With your understanding of the expansion, now you can understand how that Fibonacci forex trading system works.

First, you need to set or Stochastic or RSI to help determine whether the market is oversold or overbought.

Next, you need to set the MACD indicator to help you identify the right time to enter.

Once you got setup This 2 indicators will need to draw Fibonacci whenever you see a swing high and swing low. All you have to do is wait for the price of the route back to any one of 3 levels and then check your signal indicators. If price is not the route, but continued to move higher or lower, you just have to remove your Fibonacci, and then cross them again with a new swing highs and swing lows.

Forex trading with Fibonacci method. Mini-lesson on how to use Fibonacci We have created free software — Forex Fibonacci Calculator v2.1 Whenever you see the price close to the thinking level, you should check your indicators for the following

1) If the uptrend and will see the price thinking back to 0500 levels, you should check your Stochastic indicator to see whether the market is oversold or not. If it's really oversold, then you should move to see your MACD indicator and wait for the histogram to flip over the head again before you enter your trade.

Once you enter the trade, your exit strategy is equally important. Usually you exit your trade 10 pips before the expected extension and should always be held eventually lost about 20 to 30 pips below the breach.

Fibonacci Trading Example 1

2) If you are in a downtrend, the conditions listed above should be reversed.

Fibonacci Trading Example 2

If your violation Fibonacci levels coincide with major support or resistance level, this will give you more power at that level and thus increase your chances of winning.

Do not start to trade immediately with the Fibonacci forex strategy. You should always try any new strategy on your demo account, then move it to live when you are able to trade consistently profitable with it.

I have received emails from readers of this blog asking me to recommend good courses Fibonacci, in fact I bought a course that teaches the Fibonacci strategy and find it quite useful for my trading. You can learn more about the link below