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Chapter 10, Part VI. Combination of Fibonacci levels with candle patterns. Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 16, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Pipruit: Right. I see. So, is it proper way to combine all tools? I mean Fibonacci levels with support resistance, trend lines and Candlestick patterns?​

    Commander in Pips: Of course. It’s not just that it could be done – it has to be done, when the market shows you these possible combinations. For instance, if you see that at some Fib support, say, 0.618 coincides with an obvious trend line, and the market forms Bullish Engulfing, that is also a Wash&Rinse pattern – this is a good context for entering Long.

    Here is another important note. In fact, using Fibonacci work we try to find an area where the market could turn in the continuation of its previous thrust. So, that’s why usually we will be watching for Candlestick Reversal patterns around these areas. When you see any – you can act in two ways. Enter right after the completion of pattern, or use the more conservative approach – wait when market will trigger it according the rules that we’ve discussed already. Using candlestick patterns around Fibonacci levels allows you not to enter from a level blindly - this gives you more confidence with this particular level.

    Still, as with candlestick patterns, as with Fib levels as with both – they could still fail. That’s why we need apply efficient money management system, but this question we will be discussed in later chapters.

    Pipruit: I expected to hear precisely this answer. I understand that combining is just increasing the probability to success, but doesn’t give 100% warranty that we will get profit.​

    Commander in Pips: Absolutely.


    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.


    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    Hamza Samiullah and fran alvarez like this.
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