This strategy combines Fibonacci’s
How to use Fibonacci Strategy?
This strategy combines Fibonacci’s retracements with daily, weekly, monthly or annual pivots. In this article, we will focus only on daytime pivots, but this strategy also includes longer time slots. Fibonacci’s strategy primarily follows the maxima and minima, and in the correct interpretation of the data, the success rate is between 60% and 80%.
Example of Fibonacci’s Currency Trend for Declining Trend
For a better understanding, refer to the picture below, where we start at value. With a rising index, we get to a maximum at a certain point, from which the curve will go down until it reaches a certain minimum. The index rises again. According to the Fibonacci strategy, the index should reach its initial value. This becomes the position. At this point, it is advisable to proceed with the sale because it is assumed that the value will reach at least the value level. Therefore, it’s a good idea to set the automatic closing of the store slightly above the value. In further development, we assume that at some point we get to value. But that does not happen and the trend stopped earlier. It is therefore advisable to wait for the next minimum and to reactivate the value that occurs at the location. This is again a good indicator for the sale area with a profit setting slightly above the level. Even now, it is advisable to wait for the full minimum from which the curve reflects and starts to escalate. We should then proceed to value trade. This happens at point and now we set the automatic closing of the trade just above the level. Someone may pause at the difference between the values with the thought of a little hurt and set the value on the value to close the trade a little lower than. Such a decision, driven by emotions might occasionally come out, but if we want to achieve a success rate of between 60% and 80%, then it is necessary to approach the Forex trading with discipline and follow only that strategy.