The Fibonacci tools trading strategy you need in Forex

When you trade using Fibonacci, you can often get into the market much faster with minimal risk when you use Fibonacci to determine your entry, and again if you don’t know how to do this. You have some experience under your belt or even if you’re new and want to learn about it, I encourage you to go and visit my free mini course to take a good look we discussed the neckline entry we discussed taking profits.

The Fibonacci tools trading strategy you need in Forex

With the market opening on a Sunday, I may give it an hour maybe two hours depending on the setup if the price is far from the desired entry zone and then I let it go right and I let it do its thing and I enter the parameters and then I back off it and go do what I got it to do and this is how I do it. From executing a lot of my trades, I just said it and forgot it, and that’s something uh when you understand how to put all of these components together so you can.

Now let’s do that, let’s look at the next slide, where we’ve gone through the bullish reversals, and now what we’re going to cover is we’re going to cover the bearish reversals so that we have a bearish double top and not a bearish double top that a lot of people call A M, we have the head and shoulders, we have a diagonal end and then We have the king’s crown and the descending triangle.

Explaining the Fibonacci tools trading strategy that you need in Forex

Okay, so let’s go ahead, let’s dive into it, so the double top is a bearish reversal pattern, so you’ll typically see this at the end of an uptrend and what you want to pay attention to are the two tops at the top, so a lot of people seem to call it M um and the way they trade it They enter when support is broken.

So you see the price goes up and down and then goes up and then down and breaks and then a lot of times it will come back to retest the support level which is now showing up as resistance and enter the trade from there okay, the safest entry for new traders will be after this breakout, uh from support, so, if You are taking this on a lower time frame, it is a good idea to place your stop loss above your last point.

An example of a Fibonacci trading strategy in Forex

If you are taking this on a higher time frame, my advice is not to have such a large stop loss, my advice is to dig a little deeper find your last big high, and place your stop loss above that.

And so if you’re getting in at this break, that’s what you want to do, and then your take profit would be at the beginning of where the formation started well, so let’s see this in action, and this is weird in the euro, so what you do is ‘we’ve arrived here where We see that this sequence started just before daily support.

So we pushed above and formed a level of monthly resistance and the price came below and found support at this 4-hour level and then it rose again and pushed up at the monthly resistance level, and if you look here you can see that after it hit its highest level at the monthly resistance level.

Characteristics of trading Fibonacci tools in Forex

We kind of pushed it down and then pushed it back to weekly resistance which would have been a great entry point if you were to trade a little more aggressively if you wanted to trade a little bit more conservatively, at that four-hour level once the price made that bottom it was pushed up. This would have been a great entry point.

So even at the conservative point, the entry is 200 is just under 250 points on the table for you to be able to take advantage of if you have more knowledge and skills and as you continue to build that up, you’ll be able to take advantage of more action and get more props.

Low time frames for trading Fibonacci tools in Forex

You can see it on the lower time frames and the main characteristics of this are the three peaks that you see above this level of support, and so on your left shoulder, you have a neckline that follows you, and then you have a central peak, which is the head that people call it, and then you get a low and then you also got a high Your support is here and then push towards the top which is somewhere near or below.

The central peak for trading Fibonacci tools in Forex

I should say the central peak as long as it is lower than the central peak then you are good I think, and the main component or feature to remember here is that the level where the neckline will be similar on the right side, it will not be at the same level.

But it will be within the same area, and when this pattern is fully executed when it has been fully formed it is an indicator that the market has gone from a bull market now looks like a bear market so you can trade this before the neckline as we discussed before there is a strong entry and after that, there is A more conservative entry.

Summary

This is a conservative setup and as I mentioned throughout the article, if this is on a lower time frame the stop loss makes sense throughout the day if it is on a higher time frame you will need to dig down to find a stop loss that makes sense for the time frame you are on.