| Fibonacci trading |
| Written by Administrator | |
| Thursday, 16 October 2008 | |
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Here is one very nice trading system that can be worth your attention. When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading
system that can advise on entries with high chances to win and what's
more important it should be able to tell exactly where to exit without
need to constantly monitor the price.
With all this long introduction, it is only left to mention that
this strategy will require from traders basic knowledge of use of
Fibonacci tool. ...This is probably the only reason we classified this trading system as Complex one, not every trader is comfortable with using Fibonacci studies in Forex.
Trading setup:
Rules: Look at the price waves. Find the most recent swing high and the most recent swing low = so called Fibonacci A swing and B swing. Pull Fibonacci from A to B.
Once set, wait and watch the retracement from AB swing to unfold.
When all three criteria are met, enter once the candle is clearly closed above 5 WMA for Long entry, below - for Short.
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