Fibonacci in PFOREX Assist
Ninetieth session – PFOREX Assist Tutorial
Welcome back to Forex professional training.
In this session we will review;
- The available Fibonacci strategies in PFOREX Assist
- The Fibonacci examples in PFOREX Assist
Fibonacci Strategies
Numerous traders apply Fibonacci levels, based on Fibonacci theory, to identify major trading spots and the amount of future trend movement. You can find detailed courses about Fibonacci in Education section for further information before trading by Fibonacci.
There are two strategies from Fibonacci Retracement for detecting reversal spots;
- Overlapped
- Trend Line
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Overlapped
Two Fibonacci indicators, with different specifications, are applied concurrently. Each one is applied on different trend with various size and slope. Both trends have the same direction and the trends’ last spots are on the same price. There may be some levels from the Fibonacci indicators that overlap each other, hence this strategy will generate signals whenever price forms a suitable reversal spot near those overlapped Fibo levels.
The specifications of this strategy are as follows;
- Market type: Trend & Range market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Elements: Fibonacci Retracement, Reversal candlestick pattern, RSI and Stochastic
- Entry Price:
- Buy Order: Bullish reversal spot near the overlapped levels
- Sell Order: Bearish reversal spot near the overlapped levels
- Stop Loss:
- Buy Order: Below the last candlestick on the reversal spot
- Sell Order: Over the last candlestick on the reversal spot
- Take Profit:
- Buy Order: Double or equal to length of the candlestick, over the entry price
- Sell Oder: Double or equal to length of the candlestick, below the entry price
- Confirmations: Hidden Divergence, CCI oscillator and Classic patterns
Now let’s check some examples of this strategy.
On AUDUSD chart, price has increased after zigzags on the trend. The Fibonacci levels can be placed on both of them while the peaks of trends are on the same spot. There are overlapped levels of those Fibonacci. An Engulfing candlestick pattern has formed on the levels 50% and 61.8% of Fibonacci indicators.
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In the next example, 2 Fibonacci levels are formed on 2 various swings of downward trend. The price has returned upward until a Dark Cloud candlestick appeared near levels 61.8% and 78.6% of Fibonacci indicators. The price would decrease after it crosses the Low price of candlestick toward bottom.
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Trend Line
After some waves on the price trend, a Trend line can be drawn on peaks or valleys in bearish and bullish trend successively. A Fibonacci Retracement is plotted on the trend in which the levels may cross Trend line. In case that price returns toward those intersections, then it will bounce back with other powerful reversal confirmations.
The specifications of this strategy are as follows;
- Market type: Trend & Range market
- Symbols: Entire symbols
- Time-frames: All timeframes
- Elements: Fibonacci Retracement, Trend-line, Reversal candlestick pattern, RSI and Stochastic
- Entry Price:
- Buy Order: Bullish reversal spot near the intersections on the Fibonacci levels
- Sell Order: Bearish reversal spot near the intersections on the Fibonacci levels
- Stop Loss:
- Buy Order: Below the last candlestick on the shifting spot
- Sell Order: Over the last candlestick on the shifting spot
- Take Profit:
- Buy Order: Equal to length of the candlestick, over the entry price
- Sell Oder: Equal to length of the candlestick, below the entry price
- Confirmations: Hidden Divergence, CCI oscillator and Classic patterns
Now let’s check some examples of this strategy.
The Trend line on the upward price trend connects the valleys, then it crossed the Fibonacci levels. Price decreased toward that spot and Engulfing and Tweezer candlestick patterns appeared on that spot to confirm the reversal trend toward top.
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In the next example, price has proceeded toward level 78.6% of the Fibonacci where Trend line of peaks crossed the level. A Dark Cloud candlestick pattern appeared near that spot and confirmed bearish reversal trend.
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Notices
For higher successful trades, it is recommended that traders study the required trading courses and use Demo account for higher skills.
You can download PFOREX Assist app for iOS and other platforms devices to receive these signals instantly, however I have to insist that all the services provided PFOREX are as information, not as suggestion nor advice.
That concludes this session, until next time and another session, take care.