Forex Fibonacci strategy – the way to enter the market at the right moment
Forex Fibonacci strategy is what I will demonstrate today that is suitable for all trading assets and different systems. Hello, dear traders, this is Petko Aleksandrov, and I am going to show you now the Forex Fibonacci strategy that I am using successfully. I will show you a method that I learned a long time ago in London from an old trader, I can say, who was using it very interestingly. And I was happy to be in that place at the time.
So he showed me his Forex Fibonacci strategy system, how he is drawing the Fibonacci.
I implemented this Forex Fibonacci strategy in my manual trading, and for over 5 years now I use successfully a price action trading strategy.
And I have shared it in one course.
The course is called Price action trading course. But now, I will focus just on the Fibonacci method.
So the Fibonacci on the platforms is right, where we have different drawing tools like the Pitchforks, the Gann tools, and different Fibonacci.
![different options Forex Fibonacci strategy](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-6.jpg)
But I will use the normal Fibonacci retracement which you can find on any platform.
And I will not explain Fibonacci in detail because it’s a completely different system method. You can find a lot of information about it. I will show you how I am using it.
Fibonacci shows retracement levels
If I zoom in, you will see that there are these targets which you might be familiar with.
![great targets of Fibs Retracement levels.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-7.jpg)
Change the colour in case of poor visibility.
But we usually measure a distance where we have a retracement, and we expect the price to get there, and then we have the different targets. So what we have with the platform are the different levels.
The Forex Fibonacci strategy uses the levels:
- 38.2%
- 50%
- 61.8%
- 1.272
- remove the 78.6%
- leave 1.618%
![the settings of the Fibonacci Forex system Forex Fibonacci strategy settings](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-8.jpg)
But I will change the colour so it will be more visual. So let’s make it green as well since it’s a target or even yellow, it will be just fine.
![Change the colors for better look](https://eatradingacademy.com/wp-content/uploads/2019/07/Forex-Fibonacci-strategy-1.jpg)
And I will add 1.272, this one over here, and I think the colour is just fine.
![colourful I will add 1.272for this Forex Fibonacci strategy](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-9.jpg)
I will remove 3.618 and 2.618, so I will leave these two targets.
![take the profit with the Fibs levels Forex Fibonacci strategy with levels](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-10.jpg)
I will click on OK to save the changes.
![Save it all Forex Fibonacci strategy is ready](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-11.jpg)
And here the Forex Fibonacci strategy is ready as levels.
![Forex Fibonacci strategy. tradingstrategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-12.jpg)
Now, how I use this Forex Fibonacci strategy, I will show you step by step.
I will start from the first low that we have in this uptrend or from where our trend line starts. This is the first low of the uptrend, and it is the last low from the downtrend. It’s the same moment.
![start The last low from the downtrend.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-13JPG.jpg)
The retracement zone of the Forex Fibonacci strategy.
The beginning is where the downtrend stopped, and from here the uptrend started.
![uptrend started. Forex Fibonacci strategy beginning](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-14.jpg)
Let me zoom it, and I will show you how I’m using Forex Fibonacci. So I take the first low, and I connect it to the first high that the price made:
![FIBS Forex Fibonacci strategy drawing](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-16.jpg)
And we are looking for these highs that are visual.
![really visual. Forex Fibonacci strategy](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-18.jpg)
and we are not staring at the small highs like this one:
![Avoid small highs.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-17.jpg)
Now, the idea is that this is the first impulsive move that the price made. Now, here we have the zone for the Forex Fibonacci strategy or our retracement zone where we expect the price to get into and to continue the trend direction.
![3 levels The zone.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-19.jpg)
And we have the first target for the Fibs:
![The first and the second target. fibs](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-20.jpg)
and we have the second target.
![The first and the second target. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-21.jpg)
Now, when the price reaches the second target, I take the next high and I will draw another Fibonacci to the lowest point of the retracement.
So let me copy the Fibonacci and I have one over here.
![copy the Fibonacc Forex Fibonacci strategy with many Bibonacci](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-22.jpg)
I will take it from this high over here
![this high here. Forex Fibonacci strategy in details](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-23.jpg)
going down to the low.
![another Fib precise drawing](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-24.jpg)
One more time, this is where the second target reached and the next high I am taking another Fib down to the low which is the lowest one as a retracement to this move.
Restarting the Fibonacci.
And now what we see here, this is another move and the target is right over here and you can see that price reached it at this level.
![This iprice reached it at this level. Forex](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-25.jpg)
So I will take another Fib, let me make this one precisely, and I will start it from right over here, from this top
![nice drawing the new fib](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-27.jpg)
to the lowest point after the first one.
![I will start it from right over here, from this top to the lowest point after the first one. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-28.jpg)
And I can draw it like this:
![It's one and the same thing. strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-30.jpg)
it’s one and the same thing. And normally I leave it at the middle. Now, you can see where is my second target – 4672.24.
![next high. Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-31.jpg)
And what I need to do is I need to take the level where the price reached and take the next high.
But what you can notice is that the price went below the 0 line.
![So this is the moment when I restart the Fibonacci. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-32.jpg)
So this is the moment when I restart the Fibonacci. So if the price goes back to the lowest point, you might restart it a few times with this Forex Fibonacci strategy.
Copying another Fibonacci.
And here, if I start drawing it I will restart it over here again. I will make just a new one. And I will go to the next lowest point which I believe is the one over here.
![So let me take now one of these Fibonacci or I will make just a new one. And I will go to the next lowest point which I believe is the one over here. Forex](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-33.jpg)
So here is the new Fib and the new targets of 3835.40 and 3963.69.
![The target is reached right here from the price and I need to take it. trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-34.jpg)
The target is reached right here from the price and I need to take it as a point for the new drawing.
Forex Fibonacci strategy is a consecutive drawing process.
![The target is reached right here from the price and I need to take it. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-36.jpg)
So I will just copy another Fibonacci, again Ctrl + C and Ctrl + V:
![price action trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-38.jpg)
And I will leave it to the lowest point which is this one over here.
![Fibs steps Forex Fibonacci strategy in steops](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-39.jpg)
The lowest point after this extended move.
The price reached the second target, right over here. I take the first high after that
![The price reached the second target. trading strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-40.jpg)
and I take it to the lowest point.
![I take the first high after that and I take it to the lowest point. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-41.jpg)
The second target is used in the Forex Fibonacci strategy system.
Now the price goes towards the second target but didn’t reach it. So I keep looking for the moment where the price reaches this second target. It’s right over here with this extended move.
![action trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-42.jpg)
What I need to take now is the next high. And I will again copy the Fibonacci, and I will draw it from this top over here, going down to the lowest point.
![This will be a little bit bigger. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-45.jpg)
Let’s have a look where is the second target. It’s right at 5976.87 and the price reaches it:
![the price reaches the second target. Forex Fibonacci strategy consective drawings](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-46.jpg)
I will copy again a Fibonacci for the next drawing.
I am taking Fib from the next high where the price reached the second target. And this is actually from where the Fib starts, so I’m drawing it opposite the trend.
The second targetis what matters in this Forex Fibonacci strategy.
I’m starting from here
![I'm starting from here, and I draw it to the lowest point after this Fibonacci. trend line](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-49.jpg)
and I draw it to the lowest point after this Fibonacci. And in this case, it is right this level here.
![And in this case, it is right this level here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-51.jpg)
So instead of drawing it like that,
![I will draw it differently instead. make it visual](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-52.jpg)
I will just draw it like that,
![I will keep the same Fib. should look nice](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-53.jpg)
So this is my new Fibonacci, here is the retracement zone.
![So this is my new Fibonacci, here is the retracement zone. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-55.jpg)
And let’s have a look now at the second target:
![second target, it's right here. second target](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-56.jpg)
The price reaches it at this moment and forms a new high over here.
![The price reaches it at this moment and forms a new high over here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-57JPG.jpg)
What do I do? The same thing, copy/paste and I will bring one more Fib from this high getting to the lowest point which is right over here.
![Copy/paste manual trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-58.jpg)
And then we have the second target hit. I will take another Fibonacci and I will bring it to the next high. So I prefer to draw the Fibonacci this way so they don’t cover each other.
![I prefer to draw the Fibonaccies this way so they don't cover each other. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-60.jpg)
Zoom to make the chart clearer for this Forex Fibonacci strategy.
But you can see the second target is here, the price reaches.
![price reaches. actual trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-61.jpg)
I take the first higher high and it’s this one over here.
![I take the first higher high and it's this one over here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-62.jpg)
And then here is my zone of retracement
![And then here is my zone of retracement. fib trading](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-64.jpg)
and here is my new Take Profit at 9018.41.
![And here is my Take Profit. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-65.jpg)
And if I move the chart, you will see that the price reached it exactly.
![And if I move the chart, you will see that the price reached it exactly. price action course](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-66.jpg)
This level here of 9,000 and something was reached by this recent high.
![This level here of 9,000 and something or 9,010, 9,013, it was reached by this recent high. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-67.jpg)
So now I will take one more Fibonacci and I will start it from this high
![I will take one more Fibonacci and I will start it from this high. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-68.jpg)
going to the lowest point which, in this case, is this one over here.
![The lowest point which, in this case, is this one over here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-69.jpg)
Let me just zoom and to make sure if we are having a lower point or not.
Yeah, I think it’s a little bit but it is lower. I’m talking about this spike here. Yeah, it is lower, a little bit but it’s lower.
![I'm talking about this spike here if it is lower than these candles over here. Yeah, it is lower, a little bit but it's lower. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-70.jpg)
Don’t mess up the chart with too many drawings.
So I restart it again starting I ignore all that I have drawn. And I will need to take it to the first high.
And I have a new start for the Fib. So it is like I build it and if I see a lower low than the retracement, I need to restart it. I will take another Fibonacci and then I will take it from the first high after the second target, which is this one over here, here it is, and the lowest point of the retracement. I will draw it like that, so here it is, the very same level.
![I will draw it like that, so here it is, the very same level. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-74.jpg)
And let’s have a look at the target – 9771.95.
![And let's have a look at the target, it is this one over here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-75.jpg)
It’s not reached.
And now all of the Fibonacci that I had before that, before this one over here, I can remove it.
![And now all of the Fibonacci that I had before that, In can remove them. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-76.jpg)
I will remove them so I will not have too many drawings and mess on the chart.
Feel free to ask if you have any questions about this Forex Fibonacci strategy.
However, when you do your analysis for the asset, you do it just one time. It is good if you do it just to practice how I do it. And of course, if you have questions you can ask me. In the beginning, it could be a little bit complicated but the idea is very simple.
We take the beginning of the trend, we draw a Fibonacci, we take the second target, where the price reached we take another Fibonacci to the lowest point of the retracement and then we continue. Now, what is the idea here? We have this retracement zone where we want to enter.
And as you can see, if the price breaks the counter trend line, as I said this is one of my entries, this will be within the retracement zone of this Fibonacci. You can see if it breaks it now, it will be within this retracement. And this retracement zone is just an idea where it’s a good place to get into the trade.
![I can see that actually, this lows over here are lower probably then this was over here. Forex Fibonacci strategy.](https://eatradingacademy.com/wp-content/uploads/2020/01/Forex-Fibonacci-strategy-77.jpg)
Thank you for reading and let me know if you have any questions about the Forex Fibonacci strategy system in the comments below. But I’m sure if it is complicated for you, you just need to watch the lecture one more time and it will make sense to you, and you will learn to do it.
Just practice it, you’re welcome to send me some screenshots for your Fibs.
And this way I will tell you if you’re doing it properly or not.
If you want to learn the complete price action trading system used by me, have a look at the course Price Action trading course.
Thanks for reading and always enjoy the trading.
Cheers.