fibo trading examples

hye all.

in general, fibonacci plays a big part in trading esp currency trading. from my experience, we can't say that fibonacci levels can be considered as entry points but we should respect those levels.what i mean by respecting those levels is that we could expect some reactions in those levels.one major obstacle for new traders is that they found it difficult to draw fibo is identifying swing low and swing high. but trust me,no one can get it perfect.only by practice and observation will make it better.

so how do i use fibo?

i use fibo to identify potential entry and exit points.but, i wouldn't rely solely on fibo.i will look for convergence with other technical tools like the support and resistance, trendlines and pivots.

on the 1st chart, it is a typical example of fibo trade that i had the opportunity to profit from. from my experience, d high of monday and low of the early asian session before the euro session starts are quite significant. in this case, i have more evidence to short because d 50% fibo converged with the resistance.

i want u to practice drawing fibo and look for convergence between the fibo and other tools like S&R and trendlines. its a powerful tool!

more examples coming up

:)