FIBONACCI GUIDANCE

FIBONACCI GUIDANCE
It is very important to keep in mind, while watching a micro trend, that the
market will move up or down in a series of waves. In the eBook “Forex
Surfing” I explain how to work with Fibonacci theory, so please go and reread
that section. I can’t tell you enough how valuable the Fibonacci concepts are
to assist you with your scalping.
During a micro trend you will regularly observe the market moving in waves
often roughly retracing to the 50% or 62% levels. This is key to watch for as
when you see what appears to be a reversal in the petit trend near the key
retracement levels then that is an excellent place to attempt to enter into a
trade.

Furthermore, once the market has extended beyond the peak of the wave that
retracement low is then the appropriate location to replace your stop to.
I can’t stress enough to you the important of being aware of Fibonacci when
trading. You find immense value in using this concept when you are scalping.