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.

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 %)