# How to use Fibonacci

#### tommy0921

Fibonacci price analysis can be an extremely powerful trading tool, if we use correctly.

In this lesson, we are going to focus on how we choose the appropriate levels to execute a trade against.

Watch on Youtube and have a look through the e-books.

E-book:
Just download it. Only few pages, but it provides full detail about these indicators. Hope it can help

#### Attachments

• mt4appstore - Fib1 - MT4APPSTORE.pdf
66.7 KB · Views: 85
• mt4appstore - Fib2 - MT4APPSTORE.pdf
52.6 KB · Views: 60

#### Alchemist

I personally only use Fibonacci to help CONFIRM appropriate levels. I determine appropriate levels using trend lines and horizontal S/R lines. To borrow from Martin Pring, I use a "weight of evidence" approach.

Having said that, I found your pdf's and video very interesting. Thanks for posting.

#### tommy0921

Besides, I have free, useful Fib indicators that may help you more. Have a look
FiboSpiral - Fibonacci spiral is a special spiral that grow from the center in the Fibonacci ratio 1.618, which is also called the golden ratio. Every time the spiral makes a full turn it extends it self by Fibonacci ratio. This indicator will plot Fibonacci golden spiral on the chart. It is very easy and very flexible to use, however you have understand the initial settings before you use it.

Auto Day Fibs - Automatically draws the daily Fibonacci levels​

P/S: I just want to share indicator. If these indicators cause another infraction notice, please let me remove it.

#### Alchemist

Again, very interesting. Personally, I prefer to draw Fib levels by hand but that's just personal preference.

#### Kathia

Hi There,
I already posted this in another thread to help a trader with Fibonacci but I will post again here to help anyone who views this thread.

A wave is between values 0 and 100 fibo and any wave has a correction.
The minimum level for a correction (to be calculated as correction and to consider that the wave made the correction is 61.8 fibo). The maximum level accepted for correction of the wave is 38.2.

If it bounces back from those levels we can trade as follows: stop loss under the level of the correction ,and target is next fibo level, namely 100

Here is an example:
http://screencast.com/t/I7GuPFtE3N

This is how professional traders use fibo waves.
If the correction goes below 38.2 and hit 23.6 the correction becomes a wave and we set fibo in the opposite direction, with 100 down and 0 up.

Kathia

#### qt500

Appreciation for Chart

Thank you for this post Kathia;
Excellent job of showing how strongly PA follows the fibo levels throughout the price range;
Will look forward to other posts from you

qt500
David

#### justme-n

Fibonacci Trader is one of the most useful programs that i've ever used in my analysis

#### angelnish

##### Banned
Thanks for sharing Kathia. Good Job.

#### fxlogic

Very Well

Very well my friend. You save me more time finding instruction on how to use the fibonacci. THanks for sharing!

#### dustinplaas

Auto Day Fibs - Automatically draws the daily Fibonacci levels

I use AutoDayFibs, too (if indeed mine is the same one as this one here) ... I think it's one of the very few precise ready-to-use Fib Indicators. And it's nice and plain: just Fib lines, no unnecessary toys and fancy crap.

Cheers,
P.

#### ezekiel chew

Fibonacci analysis is indeed a good technical indicator to use for trading. Using the fibonacci retracement and prediction combination with other indicators is also a good idea to boost your trading profits.

#### stonecoldmichael

i do like Fibs, but other trend spotting tools such as ADX, RSI and Bollinger bands can be great supplements when trading using pivot points too. The market doesn't always play ball and when it comes to price movement these all have their advantages.

#### Maria08

##### Banned
i have seen many traders the fibo series, but i am still confused on the ways it might work.
so the levels form a support or resistance for the pair?
so if the pair crosses a certain level like the 50. then we should buy the pair and trade it to the next level ?

#### Exness Support

Well Fibonacci is one of the best technical indicator tool. Its simple and easy to understand it gives some retracement levels which are easy to follow. Better than many of the complicated indicators. Its a simple price action indicator which often actually works.

#### koyl

Fibonnaci is a simple and easy indicators to use . During my early trading use of indicators was not all understandable until I found this online video [url deleted] on the different use of indicators including how to use the fibonnaci. It was really helpful.

#### capitalvia01

When fitting Fibonacci retracements to price action, it's always good to keep your reference points consistent. So, if you are referencing the lowest price of a trend through the close of a session or the body of the candle, the best high price should be available within the body of a candle at the top of a trend: candle body to candle body; wick to wick.

#### Ary Barroso

Thanks a lot for your PDF; no doubt Fibo is one of the most important technical tools! I identify market trend based on Fibo level 61.8.

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