UPDATE - FIBONACCI TRADING

Careful research shows that you can also use the TMASlope Mt4 indicator to confirm your fibonacci entries.

You spot your retracement using the 4hr as usual and make entry with the TMASlope in 15min timeframe.

THE TRADING PLAN

Fibonacci trading tools are wonderful, but you can say that if you use them well, managing your entry and exit to ensure maximum profits and minimizing losses. Lot of approaches to using Fibonacci you can find online but in this article I have got something different and very profitable.

In the basic sense, when price retraces to some Fibonacci points we expect price to respond by continue the trend or we have a trend reversal. I have had terrible experience with this in the past until I introduced a filter as explained here.

The price continued the trend on getting to 50% fibo level. Now trend continuation could begin from 23.6 or 38.2 but trade at 50% became valid. I will show u why u have to wait till then. Change the timeframe to 15min and lets see.

Now this is not THEORY its real if you really want to learn start DEMOing and watch your chart to build your confidence. I told my students all the time. DEMO enough to convince yourself. Now at other retracement points no SELL until after hitting the 50% point you remain in trade until the 15min SCHAFF trend changes for your take profit or stoploss. 

Now before the trend was DOWN it was UP, let use see examples of the UPTREND. Take a look at the chart below

Here market retraced to the 23.6 level and looking at the 15min timeframe, we have a BUY signal confirming that we can go LONG.

This blog will be more of fibonacci trading with major pairs in focus. Let us have your comments and you can also join us on facebook and twitter.

Regards.