Finance

Learning to use the Fibonacci tool like a pro

0

Trading with the major trend is one of the most efficient ways to earn money in Forex. But the traders don’t know how to place a trade in favor of the major trend. They are using too many tools and are eventually messing up their trading charts. On the other hand, experienced traders in Hong Kong use a simple Fibonacci tool to trade the market with a high level of accuracy. In this article, we are going to give you some amazing guidelines which will help you trade the market in favor of the major trend. Follow the rules in this article and you will never have trouble with the trend trading method.

Drawing the Fibonacci level

To draw the Fibonacci retracement level, you need to learn about the swing high and low. Some retail traders often encounter trouble when they try to use minor support and resistance level. But when you try to find the key swings in the market, you need to focus on the higher period. Trading the lower period to find the key swings is a very challenging task. However, once you start to trade the market in the daily time frame things will become easier. To find the bullish retracement level, draw the retracement level from swing low to high. To find the bearish retracement level, use it draw from the swing high to low.

Using the candlestick pattern

Amateurs often set pending orders in the trading platform to make a profit from this market. But do you think the pending orders are going to make them win most of the trades? To make money at trading, you need to learn about the candlestick pattern trading strategy. Using the Japanese candlestick pattern and making a profit, in the long run, is the most efficient way to earn money from this market. When you spot a bullish candlestick pattern at the bullish retracement level, execute the long trade. When you spot a bearish candlestick pattern at the bearish retracement level, execute the short trade.

Important Fibonacci levels

Professional traders never trade all the Fibonacci retracement levels. They focus on important levels since it allows them to make a big profit from this market. Try to look for the price action confirmation signals at the 50% and 61.8% retracement levels. These two levels are the two most important levels that allow traders to make a big profit from this market. Before you start trading the real market try to learn more about the Fibonacci trading method by using the demo account. Once you learn to make consistent profit in the demo account, switch to the real trading account to trade in the live market.

Dealing with the losing trades

After learning the art of the Fibonacci trading strategy, naïve traders often think they have found the Holy Grail of the Forex market. But things are not as easy as they seem. You need to be prepared to lose trades. No matter which trading method you use, losing trades are inevitable in trading. Think about your long term goals so that you don’t become frustrated after losing a few trades. You must learn an advanced risk management policy because it will help you protect your trading capital. Learning to protect your trading capital should be your top priority. Unless you do so, no trading strategy is going to save your investment.

Learn about news analysis

To trade with the major trend, you need to learn about the news trading method. News trading is one of the riskiest professions in the world. But when you start dealing with the key retracement level and the major news, you will find a decent correlation in price movement. During your learning stage, stop thinking about profit and try to discover the method by which you can earn money. Concentrate in order to understand the nature of this market.

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Finance