FIBONACCI

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Bullish & Bearish Fibonacci

The Fibonacci should be drawn from a significant low point (FIB A) and dragged up towards the next significant high (FIB B). These significant pints are defined by candlestick formations at levels of support/ resistance, once satisfied with the A-B wave the Fibonacci, pull the tool over to the right hand side to allow P.A to play out.

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When applying Fibonacci, start on the weekly timeframe (in the same direction as the momentum/trend) which should have already been determined throughout the practice of earlier technical phases. Remember that the currency can take a longer period of time to reach the potential D1 + D2 extension levels on the weekly and daily charts and is a primary tool used to determine a clearer directional bias of the overall trend. The H4 & H2 Timeframes are the best for Fibonacci execution...these are the timeframes in which you must incorporate the stop loss rule (15 PIPS above the 78.6 %)

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