the more we suffer because what we think is mysterious many times is
nothing more than simple knowledge that needs to be understood. You need
to learn to become financially empowered instead of financially vulnerable.
Nothing I teach is to be feared, only understood. Have the courage to become
empowered in Forex, only then will you be successful in trading Forex.
STEPS TO BE FOLLOWED WHEN TRADING AN UPTREND
1. Draw all uptrend lines and downtrend lines, inner, outer, and
long-term. (This will help to determine if the market is in an
uptrend, downtrend, or if a trend line has been broken, signifying
the potential end of a trend or a reversal.)
2. Find the latest upward A, B and use the Fibonacci tool on your
trading software to draw the Fibonacci retracement and extension lines.
3. Find a C buy-entry at a convergence, such as a Fibonacci
retracement level, upward trend line, morning star, tweezer bottom,
or bullish engulfing candle.
4. Find the projected Fibonacci D extension, as well as four levels of
past resistance. Find the closest level of resistance to the Fibonacci
extension. Place a limit exit order 10 pips in front of, or before it
hits, either the Fibonacci extension or the level of resistance
(remember when the bulls score a point it always pulls back).
5. Look at your potential financial risk with your protective stop-loss
order. If you can’t afford the potential loss should the trade not work
out, then stay out and do not trade!
6. Pull out your trader’s checklist that you have created or the one
supplied by Market Traders Institute. Create a trading plan and
trade your plan.
STEPS TO BE FOLLOWED WHEN TRADING A DOWNTREND
1. Draw all uptrend lines and downtrend lines, inner, outer, and longterm.
(This will help to determine if the market is in an uptrend,
downtrend, or if a trend line has been broken, signifying the
potential end of a trend or a reversal.)
2. Find the latest downward A, B. Use the Fibonacci tool on your trading
software to draw the Fibonacci retracement and extension lines.
3. Find a C sell-entry at a convergence, such as a Fibonacci retracement
level, downward trend line, evening star, tweezer top, or
bearish engulfing candle.
4. Find the projected Fibonacci D extension, as well as four levels of
past support. Find the closest level of support to the Fibonacci
extension. Place a limit exit order 10 pips in front of, or before it
hits, either the Fibonacci extension or level of support (remember
when the bears score a point it always pulls back).
5. Look at your potential financial risk with your protective stop-loss
order. If you can’t afford the potential loss should the trade not work
out, then stay out and do not trade!
6. Pull out your trader’s checklist that you have created or the one supplied
by Market Traders Institute. Create a trading plan and trade
your plan.
Fibonacci numbers are really significant and play a big part in our
lives. Learning the Fibonacci numerical sequence and trading ratios adds a
very important tool to your trader’s toolbox.
Many traders fail because they are too busy trying to tell the market
what to do. Do not try to tell the market what to do—that is like telling the
rapids to step aside because you want to leisurely swim upstream. It is not
going to happen. Learn how to read the markets. Let it tell you what it is
going to do and then go with it.
There is a reality as you trade, and you need to accept the fact that you
cannot make money 100 percent of the time in the market, even with the
knowledge of the Fibonaccis. But you can execute your trades 100 percent
of the time using productive trading rules and become a winning trader,
even by only winning 50 percent of the time, provided you maintain the
right equity management.
Read More : Fibonacci In Trend Trading
