Hmm, interesting question. I suppose that you would have to do a ton of backtesting to confirm whether it does off the 50% to the 61. However, who has the time? Other factors also play strongly into whether price action will retrace at certain Fib levels. Take care…

Price action trading is the way to go I have discovered though I must admit that I still use fibonacci as a guide with the pipdaq setups. They work really well together…

WHY is this supposed to work in the first place and if it works how come the market does not become efficient to this "exploitative opportunity" considering so many traders are supposed to use these fibonacci based strategies?

Many people call or email me that Fibs don't work, all you need to do is watch our videos, classes, and daily forex blogs to see Fibs in action. Look at EUR/USD swing low around Jan 12, 2012 and high at Feb 9, 2012, where did price go before it found support and reversed up 300 pips? The 50% FIBONACCI level we taught 5 years ago and still use as a smaller part of our systems now. Only people who think fibs don't work do not know how to use them.

@ForexMaster100 This video was done 5 years ago! Our systems now are much more advanced and we have statistical tools that show REAL TIME trend. So where in past we'd buy 50% level we now more often buy 38% fib if move back to it had less momentum than the previous TREND move momentum. If trade fails we lose 8-12 pips and look again at the 50% and 62% levels BUT ONLY if momentum makes sense and we also look at DAILY/WEEKLY/MONTHLY stat trend. If today's trend AGAINST weekly we pass!

@FXHEROS The STRONGER the move, the more likely the 38% fib will be support. I prefer taking the 50% level and sometimes scale in at 62% level with stop 5-10 pips outside of that. That's for INTRADAY fibs but for Fibonacci levels off of longer term multi day or week moves rules totally different. This video is for intraday trading only, see our website for our longer term strategies.

@sactemp777 One reason I primarily trade Forex is because I have tools that show in real time what the momentum is and trailing stops that are also based on this. Thus once in a trade and momentum is strong its likely to continue but when not I exit with small loss, break even or sometimes 5-15 pip profit. The KEY to trading no matter what you trade is small losses and BIGGER wins. So for stocks, find its ATR and good profit is 20-35% of its Average True Range.

Can anyone confirm if price retraces most accurately off the 50% I hear 80% of the time to a continuation than 61.% which happens 20% of the time? Also, if price breaks or reaches near 78.6% price is preparing for a reversal in the trend anyone got experience of this thanks.

hi
20-25 pips is for currency…
what about equity stock? how much dirction of the move you suggest? any specific percentage of direction of move you have come up with?

@tromboista Most professional traders have multiple monitors. I use 4, one 30 inch and 3 24 inch dells. It's impossible to record all my screens in video and it would be too big to stream. I do fib levels EACH NIGHT, takes me 30 minutes and the levels I manually calculate show up on all our traders charts each day. Come to our class for 3 months free and YOU CALCULATE the percentages that they work. Make your own opinions of Fibs once educated and you SEE.

@tromboista NOTHING works 100% of the time or even some days 70% of the time. NOTHING. So with that out of the way yes you will have losses using Fibonacci and every other trading tool or system out there. They key is small losses and holding trending winning trades for as many pips as you can or scaling out as it goes your way. We also use statistical momentum tools we developed to take SOME FIB trades while avoiding others. I'll give you 3 months of training free at our site to learn.

@hellahotdude Most new traders have NO CLUE HOW LITTLE THEY KNOW. Fibonacci is maybe 10-15% of our trading system. We use them in CONJUNCTION with other support resistance areas, how many waves the market has moved and MOST IMPORTANTLY our statistical momentum tools. If EUR/USD has pulled back to its 50% fibonacci level and has -80 weakness its too weak to buy, we'd pass on that one or wait to see if it stalls there and then buy or buy the 62% Fib. We also wait for pattern signals first as well

@HOW2GetFREEforexROBO We trade only intraday but Fibonacci areas work on all time frames. I spend 30-45 minutes per day analyzing the 12 main pairs I trade on multiple time frames and I put these longer term fibonacci levels on our charts available free to all of our traders. Would I waste 12 hours+ a month doing this for my own trading and trading of our thousands of users if I felt they didn't work?

@tromboista NOTHING works 100% of the time. New traders seem to always be focused more on winning percentages than EXPECTANCY which deals more with the win vs loss ratios. That's the #1 secret to trading. You can be 35-40% winning but if you have a lot of break even trades, small 6-10 pip losses and have wins from 20-50 pips you'll be doing well. Plus most traders don't have any good statistical measure of how strong or weak a currency is. We don't buy if currency is extremely weak, ever.

@r29 Fibonacci levels work on every market I've traded. I started out 11 years ago only trading stocks then started trading S&P futures and for last 6 years focused mostly on Forex. The bigger the market the more Fibonacci levels work. I doubt they'd work on penny stocks for example as amateur traders don't understand how to use Fibs. We also mostly focus on FIBONACCI CONFLUENCE areas which is a much more advanced use of Fibs that we teach in our class. Signup for 3 months FREE at our site.

@convictPKlol Your comments are pure nonsense. Fibonacci levels are used by the majority of professional traders. Don't believe me then if visiting NY or Chicago stop into a trading firm and talk to the traders. Secondly Fibonacci levels are a bit of an art and we teach them DAILY in our Forex classes. There are times we buy the 38% retracement, most of the time wait for 50% and sometimes the 62%. We also use OTHER TOOLS like our currency meter to measure momentum, NEVER buy super weak ones

Nice one ! Finally I can learn how to use Fibonacci! It's kinda confusing at first. I hope I can learn more.

I used to think fibs were a load of crap but its strange how price seems to gravitate to these areas

If you really want to earn money with forex trading you should try this! It worked for me at least! http://tinyurl.com/km29vlb

Do you only wait for the nearest consolidation area on downward trends or upward trends as well?

Hmm, interesting question. I suppose that you would have to do a ton of backtesting to confirm whether it does off the 50% to the 61. However, who has the time? Other factors also play strongly into whether price action will retrace at certain Fib levels. Take care…

Retracements by far are a great confirmation tool to add to your already existing signals, especially on larger time frames.

Excellent fibonacci video, thanks for the all the info helped me out a ton. Going to sub!

Price action trading is the way to go I have discovered though I must admit that I still use fibonacci as a guide with the pipdaq setups. They work really well together…

i like fibs but i dont know how to use them lol. still learning.

thank you very much

WHY is this supposed to work in the first place and if it works how come the market does not become efficient to this "exploitative opportunity" considering so many traders are supposed to use these fibonacci based strategies?

@leveragefx Thanks for the guidance . . .

Many people call or email me that Fibs don't work, all you need to do is watch our videos, classes, and daily forex blogs to see Fibs in action. Look at EUR/USD swing low around Jan 12, 2012 and high at Feb 9, 2012, where did price go before it found support and reversed up 300 pips? The 50% FIBONACCI level we taught 5 years ago and still use as a smaller part of our systems now. Only people who think fibs don't work do not know how to use them.

@ForexMaster100 This video was done 5 years ago! Our systems now are much more advanced and we have statistical tools that show REAL TIME trend. So where in past we'd buy 50% level we now more often buy 38% fib if move back to it had less momentum than the previous TREND move momentum. If trade fails we lose 8-12 pips and look again at the 50% and 62% levels BUT ONLY if momentum makes sense and we also look at DAILY/WEEKLY/MONTHLY stat trend. If today's trend AGAINST weekly we pass!

@FXHEROS The STRONGER the move, the more likely the 38% fib will be support. I prefer taking the 50% level and sometimes scale in at 62% level with stop 5-10 pips outside of that. That's for INTRADAY fibs but for Fibonacci levels off of longer term multi day or week moves rules totally different. This video is for intraday trading only, see our website for our longer term strategies.

@sactemp777 One reason I primarily trade Forex is because I have tools that show in real time what the momentum is and trailing stops that are also based on this. Thus once in a trade and momentum is strong its likely to continue but when not I exit with small loss, break even or sometimes 5-15 pip profit. The KEY to trading no matter what you trade is small losses and BIGGER wins. So for stocks, find its ATR and good profit is 20-35% of its Average True Range.

Can anyone confirm if price retraces most accurately off the 50% I hear 80% of the time to a continuation than 61.% which happens 20% of the time? Also, if price breaks or reaches near 78.6% price is preparing for a reversal in the trend anyone got experience of this thanks.

hi

20-25 pips is for currency…

what about equity stock? how much dirction of the move you suggest? any specific percentage of direction of move you have come up with?

Rgds

@tromboista Most professional traders have multiple monitors. I use 4, one 30 inch and 3 24 inch dells. It's impossible to record all my screens in video and it would be too big to stream. I do fib levels EACH NIGHT, takes me 30 minutes and the levels I manually calculate show up on all our traders charts each day. Come to our class for 3 months free and YOU CALCULATE the percentages that they work. Make your own opinions of Fibs once educated and you SEE.

@tromboista NOTHING works 100% of the time or even some days 70% of the time. NOTHING. So with that out of the way yes you will have losses using Fibonacci and every other trading tool or system out there. They key is small losses and holding trending winning trades for as many pips as you can or scaling out as it goes your way. We also use statistical momentum tools we developed to take SOME FIB trades while avoiding others. I'll give you 3 months of training free at our site to learn.

@hellahotdude Most new traders have NO CLUE HOW LITTLE THEY KNOW. Fibonacci is maybe 10-15% of our trading system. We use them in CONJUNCTION with other support resistance areas, how many waves the market has moved and MOST IMPORTANTLY our statistical momentum tools. If EUR/USD has pulled back to its 50% fibonacci level and has -80 weakness its too weak to buy, we'd pass on that one or wait to see if it stalls there and then buy or buy the 62% Fib. We also wait for pattern signals first as well

@HOW2GetFREEforexROBO We trade only intraday but Fibonacci areas work on all time frames. I spend 30-45 minutes per day analyzing the 12 main pairs I trade on multiple time frames and I put these longer term fibonacci levels on our charts available free to all of our traders. Would I waste 12 hours+ a month doing this for my own trading and trading of our thousands of users if I felt they didn't work?

@tromboista NOTHING works 100% of the time. New traders seem to always be focused more on winning percentages than EXPECTANCY which deals more with the win vs loss ratios. That's the #1 secret to trading. You can be 35-40% winning but if you have a lot of break even trades, small 6-10 pip losses and have wins from 20-50 pips you'll be doing well. Plus most traders don't have any good statistical measure of how strong or weak a currency is. We don't buy if currency is extremely weak, ever.

@r29 Fibonacci levels work on every market I've traded. I started out 11 years ago only trading stocks then started trading S&P futures and for last 6 years focused mostly on Forex. The bigger the market the more Fibonacci levels work. I doubt they'd work on penny stocks for example as amateur traders don't understand how to use Fibs. We also mostly focus on FIBONACCI CONFLUENCE areas which is a much more advanced use of Fibs that we teach in our class. Signup for 3 months FREE at our site.

@convictPKlol Your comments are pure nonsense. Fibonacci levels are used by the majority of professional traders. Don't believe me then if visiting NY or Chicago stop into a trading firm and talk to the traders. Secondly Fibonacci levels are a bit of an art and we teach them DAILY in our Forex classes. There are times we buy the 38% retracement, most of the time wait for 50% and sometimes the 62%. We also use OTHER TOOLS like our currency meter to measure momentum, NEVER buy super weak ones