Get this 1 Minute Forex Trading System FREE that make money instantly anytime you want. Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Discover Don Steinitz’s Forex Fractal Breakout Custom Indicator that can make you a lot of pips. Don Steinitz: Fibonacci Who? We will be using Fibonacci ratios a lot in our trading so you better learn it and love it like your mother. Fibonacci is a huge subject and there are many different studies of Fibonacci with weird names but we’re going to stick to two: retracements and extensions.
Let me first start by introducing you to the Fib man himself…Leonard Fibonacci. Leonard Fibonacci was a famous Italian mathematician, also called a super duper uber geek, who had an “aha!” moment and discovered a simple series of numbers that created ratios describing the natural proportions of things in the universe. The ratios arise from the following number series: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ……
This series of numbers is derived by starting with 1 followed by 2 and then adding 1 + 2 to get 3, the third number. Then, adding 2 + 3 to get 5, the fourth number, and so on. After the first few numbers in the sequence, if you measure the ratio of any number to that of the next higher number you get .618. For example, 34 divided by 55 equals 0.618. If you measure the ratio between alternate numbers you get .382. For example, 34 divided by 89 = 0.382 and that’s as far as into the explanation as we’ll go.
These ratios are called the “golden mean.” Okay that’s enough mumbo jumbo. Even I’m about to fall asleep with all these numbers. I’ll just cut to the chase; these are the ratios you have to know:
Fibonacci Retracement Levels
0.236, 0.382, 0.500, 0.618, 0.764
Fibonacci Extension Levels
0, 0.382, 0.618, 1.000, 1.382, 1.618
You won’t really need to know how to calculate all of this. Your Steinitz Fractal Custom Indicator will do all the work for you. But it’s always good to be familiar with the basic theory behind the indicator so you’ll have knowledge to impress your date
I’m announcing a very exciting upcoming live webinar on how to successfully use “Bollinger” bands as a standalone method for making a lot of money with extreme accuracy. After one year of research I found a method of combining another indicator (which I will explain in depth in the webinar) along with “Bollinger” bands to get you in a trade at the perfect moment and the exit for maximum profit with very low risk.
The Bollinger Bounce
One thing you should know about Bollinger Bands is that price tends to return to the middle of the bands. That is the whole idea behind the Bollinger bounce (smart, huh?). If this is the case, then by looking at the chart below, can you tell us where the price might go next?
If you said down, then you are correct! As you can see, the price settled back down towards the middle area of the bands. That’s all there is to it. What you just saw was a classic Bollinger bounce. The reason these bounces occur is because Bollinger Bands act like mini support and resistance levels. The longer the time frame you are in, the stronger these bands are. Many traders have developed systems that thrive on these bounces, and this strategy is best used when the market is ranging and there is no clear trend.
Both of these indicators are already in your Metatrader 4 platform and I will explain precisely how to set up your charts with everything you need to trade very successfully!