Forex Trading - Fibonacci and the Market's Secret Code
By Nathan Pennington

I'm going to say something that may sound foolish or like hype, but it's not. Are you ready? The market has a secret code, and Fibonacci is the key to cracking it. Read on and I'll prove it to you.

For example, when you look at a forex chart, what do you see? Randomness? The price is everywhere? It doesn’t make any sense?

Keep looking. You'll see it.

Zig-zag? Looks like a misshapen saw? Now you're getting close. The market moves in thrusts and retracements. This is just a fact. It's made so by the way traders trade and how they perceive the market in terms of fear and greed.

Fair enough, how does that help us? Fibonacci retracements help us to measure retracements in the market and give us something meaningful to help us trade them.

No, there is no magic in the Fibonacci sequence. However, it does give you a very simple way to look at retracements and trade them. Since that is what the market is made of, it fits like a hand in a glove (or perhaps a key in a lock).

Just keep in mind that the retracement levels are a tool. They are not a god. Price doesn't have to obey them. Yet, it does give you a simple way to see it. It's like giving your mind a reference point, but it sure beats guessing.

So look at some charts. See how Fibonacci fits in everywhere? Draw some of them on the charts. Beautiful, isn't it?

Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".

Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

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