Oct 24th, 2010
In our opinion if you are trading without understanding how to apply fibs you are at very low odds of making money consistently. It is not only using them it is how you use them. In our 15 years of trading we have developed a way to use the fibs with less confusion. Also in our 15 years we have seen that most people apply the fibs wrong to their charts. Even the most well known traders use them wrong. So if you were taught the wrong way to use the Fibs you will give you a false result and you will not be able to build confidence.
We all know that the markets do not go straight up or down so it is understanding that depending on what the pullback looks like determines if the trend will continue or not. All the pullbacks develop the trend but if you wait to long to get into the trend you will be wrong as well. This is what is frustrating about trading you can be right on the direction and still lose money if you are too late entering the trade.
Look at any chart and you will see waves up and down, it is normal and using the Fibs can tell you if the last move was true or false. If the wave is true it will resume and if it is false then the last low will be taken out (this is a long example).
It is important to use fibs on multiple charts so you can see the bigger pattern as well as the smaller pattern. If you ignore even one of the time frames we use then your odds are cut in half instantly because you will not see the full story behind what is happening.
It takes time to learn how to properly use Fibs both on the retrace and extension side of the equation but it is how the market naturally flows and if you are not using them you are most likely trying to trade against the true condition of the market making it much harder on yourself.
On a side note in our 15 years of trading we have never found a auto-fib-tool that comes close to drawing the fibs in yourself meaning; don’t try to skip the education and think you can just purchase a auto fib tool that will tell you what to do. Save the money and learn how to use them yourself manually because the outcome will be much better and you will understand why you are suing them not just waiting for something automatically to happen on your charts.
To learn how to use Fibs the correct way and to understand how to use them on multiple time frames to gain the highest odds join our group today and get the core videos plus our day by day video that follows every move in real time.
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