How do Fibbonacci Retracements Used?

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Hello fellow traders, I'm kinda new in forex and I am wondering how to properly use the Fibonacci retracements in trading. I've heard that it can predict price movements and once you mastered the use of it. Trading would be as easy as abc. Any experienced Fibs user out there, need help guys.

Thanks in advance and happy trading everyone.

 

look at this to know how to use it

https://www.metatrader5.com/en/terminal/help/charts_analysis

for suggestion. MORE FAR IT IS MORE ACCURATE IT IS but more rarely happen too.

and can be lose too, like any indicator.

you like news trading eh? so welcome to technical analysis messy things

for fibonacci you must know fundamental, chart formation, candle pattern.

but the most important is to define the tren.

so not easy like trading ABC

maybe, after use it you'll think: more easy get pips from news trading

nearly didn't thinking and Bang, let the price give you profit.

 
Libros:
look at this to know how to use itIntroduction to Technical Analysis — MetaQuotes Software Corp.for suggestion. MORE FAR IT IS MORE ACCURATE IT IS but more rarely happen too.and can be lose too, like any indicator.you like news trading eh? so welcome to technical analysis messy things for fibonacci you must know fundamental, chart formation, candle pattern.but the most important is to define the tren.so not easy like trading ABCmaybe, after use it you'll think: more easy get pips from news trading nearly didn't thinking and Bang, let the price give you profit.

you know what Libros, I just quit news trading and I am testing a new trading system right now, the cornflower hourly system. Works a lot better than news trading.

 

Fibo Retracement doesn't require any fundamental analysis know-hows. As soon as you see two extreme top and bottom prices, you can use it to catch some reversal move or just use the fibo levels as support/resistance.

For example, 4 hours ago EURUSD peaked at 1.3500. Just 30 minutes ago it shot down 200 pips to 1.3300, and it starts to trend a bit up as price breaks trend line. So now you draw fibo retracement from the top 1.3500 to the bottom 1.3300. You'll see first line 23.6% retracement, second line 38.2% retracement, 50%, 61.8% and 100%. Conservative trader would buy and close the position when price reaches 23.6% or 38.2% level. Aggressive trader would go as far as 50%.

There are several variations though. Some would wait until price reaches 38.2% and sell short from there (instead of buy), while some others would wait until a level is confirmed as resistance/support to enter an order.

 
scorpion:
Fibo Retracement doesn't require any fundamental analysis know-hows. As soon as you see two extreme top and bottom prices, you can use it to catch some reversal move or just use the fibo levels as support/resistance.For example, 4 hours ago EURUSD peaked at 1.3500. Just 30 minutes ago it shot down 200 pips to 1.3300, and it starts to trend a bit up as price breaks trend line. So now you draw fibo retracement from the top 1.3500 to the bottom 1.3300. You'll see first line 23.6% retracement, second line 38.2% retracement, 50%, 61.8% and 100%. Conservative trader would buy and close the position when price reaches 23.6% or 38.2% level. Aggressive trader would go as far as 50%.There are several variations though. Some would wait until price reaches 38.2% and sell short from there (instead of buy), while some others would wait until a level is confirmed as resistance/support to enter an order.

Thanks sir scorp for a very clear explanation. Thank you sir thank you.

 

I have added a new book on my site which deal with fibonacci. It does not deal on fibonacci in regards to trading, but it gives a very nice intro to fibonacci numbers and how they are so special. It is intended to guys who know nothing about fibos. Link here for all those interested

Update: Check this one too

Hope that helps

 
bossxero:
I have added a new book on my site which deal with fibonacci. It does not deal on fibonacci in regards to trading, but it gives a very nice intro to fibonacci numbers and how they are so special. It is intended to guys who know nothing about fibos. Link here for all those interestedUpdate: Check this one tooHope that helps

Thanks for the info boss. That really helps a lot. And lots of traffic are coming on your way.

 

More Fibo stuffs have been added. Check it when you got some time.

All the best in your endeavour

 
bossxero:
I have added a new book on my site which deal with fibonacci. It does not deal on fibonacci in regards to trading, but it gives a very nice intro to fibonacci numbers and how they are so special. It is intended to guys who know nothing about fibos. Link here for all those interestedUpdate: Check this one tooHope that helps

does fibonacci channel include in the book?

wonder where u get all those...free

 

I dont think I read about fibo channels in any of these books. And that seems new for me. I would like to know some more about it and hopefully find a good book on that thing. The books covers mostly retracement levels and extensions.

hanz:
does fibonacci channel include in the book?wonder where u get all those...free
 

hi buangcla, perhaps you'll like to check out the link below. it's a nice readup on fib extensions/retracements.

Fibonacci Retracements and Extensions - FXAddict Community

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