In the forex training course section (simply register to get free access) right hand side of this page, I went into great detail as to how I set up my forex charts and how I use the tool that is based upon the calculations of a 13th Century mathematician! Calculations that were expanded upon by none other than Leonardi Davinci.

Below is a video that I recorded a few years ago on the same subject and explains the history of the principle and how traders in forex, commodities, shares use this mathematical equation to plot and estimate where price is likely to go next.

Some traders rely exclusively on this tool which is yet another form of support & resistance.

You can use it to plan where to enter and exit trades and where to take profit and where to place your stops.

Does Fibonacci work?

Yes, surprising well in many cases. price often stops to the pip at fibonacci points especially 50% & 61.8% – The golden Ratio.

If you would like to know more on this fascinating subject check out this article in WIKIIPEDIA

Why Does Fibonacci Work?

As with all forms of support and resistance this becomes a self fulfilling prophecy because so many traders around the world are watching the same areas.

Here is the Fibonacci video and for a more up to date version register now for teh full training course which is 100% FREE

http://youtu.be/-JQWU_huDaw

Author: Marc Walton