There are several systems based upon the ideas of Fibonacci. You could read books the rest of your life and get about halfway through everything that has been written about that series of numbers. One thing I've learned (from a friend who has a PHD in Math) is that you don't have to start the Fibonacci sequence with '1'. For example, the most common sequence begins with 1,1,2,3,5,8,13,etc... the next number is the sum of the previous two numbers. But you could also start with '2'. That would be 2,2,4,6,10,16,26, etc..
Now having said all of that I personally have been using a system that relies on fibonacci numbers to place profit taking points in my trades. Search for 'Vegas Tunnel' or visit forexfactory and you'll see what I'm talking about. Good luck and happy trading!
Hey guys, today i was reading your replies for using the fib system. in my opinion, or as a one year trader, i have leanred a succesfull system of using the fib, and i would like to share them with you.
i use fib all the times, in all pairs, and with 4hr chart, 1 hr or even 30minutes
while a pair found high and lows, usualy, it stalls at its 50% fib, but we dont sell or dont buy there.
A sell signals generates only if the price failed 2 or 3 times. or if the price broke its 50%, and the next candle makes low lower than the previous candle.
For and example, i have used these systems, and i gained a lot of pips and money. So, plz if i dont disturb you, open now the following charts and you will understand more what i am saying:
GBP/JPY 4 hr, and draw the fib lines from 251.18 - 219.20
on 26 aug, i sold this pair when the first candle broke 50%, and next candle made low,lower than the preivous candle, and placed stop loss at the candles high. so i took 300 pips,
As you continue, you will see the next tauch in 31 aug. and again it failed to break, the next red candle, so i sold again and i took again 200 pips.
Later, on sept. 30, the price broke its 50% retracement, i bought the pair 5 pips above the first failur. so i bookd another 100pips, and i think this pair should go to it 62% fib.
I have another example, and again sorry if i am disturbing you
I have NZD/JPY , plz draw a fib lines from 97.76 - 74.22 in 4 hr chart
you will see that the price stalled at in its 50% fib. at 86, where you cant sell or buy unless a failur occurs, so if you take a closer lookm to the candle dated 24 sep, and time 13.00, you will c that the price tauched 50% , and made a low lower than the previous one, so i sold and my loss was at high of the candle, and i took around 80pips. and directly i placed an order to buy the pair at 5 pips higher than this candle, so i took another 80 pips, and as u see the price went to 62%and stalled again, and now i have another buy order at the break of 62%
This was my fib system, and i hope it is a good one for you, i only use this system in fib. and i want to thank you for giving ur time to read this,