the great Fibonacci

<<Fibonacci levels>>

  You can check what are Fibonacci numbers in Wikipedia here: http://en.wikipedia.org/wiki/Fibonacci_number, in this topic we are not concerned with how did they emerge, but how will we use them in forex promptly, it is said that every thing on earth related to rates or ratios is linked by a mean or another to Fibonacci levels, so they resemble magic numbers, with super effects in our world.

Types:

Retracements, expansion, time zones, fan, arcs (again the most public used is retracement levels, so we will focus on the basics)

How to draw?

if the trend is ascending, so drag Fibonacci from bottom to top (recent or far, but recent ones give better results), surely if descending do the opposite thing, this video beneath will clarify how to drag Fibonacci correctly.

N.B:- the golden percent in Fibonacci is 61.8% which is already present in the metatrader standard options, it is noticed that most of retracement stop there, or break, and if it is broken, the trend is likely reversed.

Some examples of how Fibonacci perform very well in forex:

N.B:- retracement maybe from a distinct point or from an area as in above examples, so just wait for a confirmation by a reversal candle or helping indicator, then enter with the new direction (we will discuss the Japanese reversal candlesticks later on in this blog)