Hello guys
Today I will talk about the magic of Fibonacci. I won't tell you a story about Fibonacci, of course, nor what most people know, and those who don't know should go check the explanations.
I want to tell you a successful method with a guaranteed 50 to 60% deal, God willing
But you all know the risks of trading and of course your entry and exit with all your precautions.
The way is simply like this:
Determine the direction of the market using a larger timeframe, weekly or daily.
Go down to a smaller timeframe, for example, if you are on the weekly, work on the daily and 4 hours, or if daily, work on 4 hours and 1 hour, and so on.
Of course, Fibonacci in the upward direction is drawn from the lowest point to the highest point, meaning from the last trough to the last peak and vice versa. The points should be clear, not in a sideways market with small candles.
I prefer to work on 4 hours and 1 hour, it's the best for me, and you have the freedom to choose the timeframe.
After determining the direction and being on the timeframe you will work on, draw Fibonacci on the 4-hour timeframe first. For example, in a bullish market, draw from the last trough to the last peak and define a box on the golden ratios 0.5 and 61.8. Then close Fibonacci and write on it 4 hours, after which go down to the 1-hour timeframe that we will work on and draw Fibonacci from the last trough to the last peak, define the same area, and draw a box and write on it hour.
So, where is the new thing? Wait, I will tell you.
The new thing is the intersection of the two boxes; the intersection points are the strongest areas to enter trades and there are several possibilities for the two boxes to match each other. It’s wonderful, a very strong area, or they match from the upper line of the 4 hours with the lower line of the 1 hour, very strong, and so on. Any matching area is the area where the trade is.
Of course, this is 50 to 60 percent of the trade; the rest of the trade or confirmation may be price action for candles. The two main patterns are the engulfing and hammer with RSI; we look for divergence, all confirmations for the trade.
You determine your entry area with your target and the stop-loss below the 4-hour box, of course.
I have tried it and it is a very successful method, hopefully, but you all know that the market has no dear nor big and you are aware of the risks of trading.
Note (you can take the area from 38.2, 0.50, and 61.8 completely in a rectangle, it will also be strong).
I had made a video for the deal, but there was a problem and the video is gone. I will make a new video and upload it.
I hope you share your opinions and comments with me.
