Live Trading Example – 61.8% Retracement in Fibonacci Forex Trading

In this video I will show you how to successfully apply the Fibonacci Forex trading levels. I managed to successfully forecast a price retracement from the 61.8% Fibonacci level. I hopped into an emerging price increase, and I ended up with a profitable long trade.

Signals for the Fibonacci Forex Trade

  1. The price has interrupted a bullish trend and started a decrease.
  2. The price showed hesitation at the 61.8% Fibonacci level.
  3. At the same time, the bottoms of the price action were matching the same bearish line.
  4. The bearish line and the 61.8% Fibonacci Forex level created a strong support zone.
  5. The price bounced from this support zone, triggering my long trade.

Stop Loss and Target of the Trade

I placed my Stop Loss order below the 61.8% Fibonacci level. Notice that I took into consideration a round number on the chart in order to conform to eventual psychological area.

I placed my target at the 0.00% Fibonacci level. After all, this is the ultimate target when trading Fibonacci retracement of the price action.

Live Trading Example

Notice that due to high volatility the price shifted below the 61.8% level for a short period of time. However, this doesn’t mean that the level is overpowered. In this relation, the good position of my Stop Loss order kept me alive in the trade. I admit that my Stop might have been better one pip below at 109.45 instead of 109.46. The level at 109.45 would have contained the price action in a better way. The good thing is that this 1 pip I am talking about did not affect my trade at all.

I caught a 14 pips price increase with my long trade, which equals to approximately 0.13% profit for about 1 hour of trading. This I believe is a very good result having in mind the time spent being in the market.

Bottom line, the Fibonacci in Forex is an extremely useful approach to identify potential price pullbacks. Very often you will get chart or candle patterns confirming the turning point on the chart.

What are you waiting for?

START LEARNING FOREX TODAY!

Team ForexBoat
Team ForexBoat

Our goal is to share this passion with others and guide newbies to avoid costly mistakes. Today we want to share all our knowledge and insights, so you can take your trading skills to the next level.

What are you waiting for?

START LEARNING FOREX TODAY!

as seen on: