Sunday, July 26, 2009

Fibonacci is used many ways, but how many of you ever use it to determine the balance point between long and short? Fibonacci can be used to help identify reversal points in the market as they are unfolding and help give us one more tools in our inventory; to give you that ever so hard to keep edge in trading. Reversal signals are key in keeping pace with market sentiment. There are ways that we can use the Fibonacci tool as an aid in seeing these reversal points and to be able to look past its levels as merely support and resistance points. Used properly the Fibonacci tool can give you that looking glass that measures overall market sentiment. A simple observation is all that’s needed with the application of the Fibonacci tool to measure the balance between a long and short market sentiment. One day to the next can give us the direction that the market is most likely to take the following day along with a few basic rules of using the Fibonacci tool.Forex Training Video On How We Use The Fibonacci Retracement LevelsIn this Forex training video I strip down the Fibonacci tool so we can focus on the three main inner levels of the tool. The Fibonacci retracements are a critical part of trading as they provide entry points into the market where you are buying at wholesale. Remember you want to buy at wholesale and sell at retail to make money. Once again we use the Fibonacci to to frame the market and create our market lens. We do not use it as some magical indicator. It provides great opportunities to make money trading Forex; when used logically.

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