As promised earlier last week about a system tht I will show n give, so here it is; presenting Fibonacci Trading which is used by many in trading daily not only for forex but many other tradings.
I will not go into the history of Fibonacci as tht can be obtained by searching in Google and I will not mention the method of how to get Fibonacci ratios or numbers as tht too can be obtained via searching online.
I will go right to the point.Why do I call this a system is simple, because it is used directly to trade daily with or without any indicators, but if it is coupled with indicators then it is an added bonus and much more precise. How to couple it with indicators, will be covered at a later time.
Many know what is Fibonacci trading, and also all about price retracements,price extensions and price projections or price objectives but the problem most new traders in Fibonacci face are when do we use price retracements,price extensions and price projections or price objectives? And at which time frame do we use it?
Some may know via theoritically we should use the swing high and swing low to draw the Fibonacci lines as in MT4. But a question may arise, tht is which swing high and low to be used as there may be many swing highs and lows in different ranges. And if we are able to get the correct swing high and low, then, when is the transition between a retracement and an extension range? And not forgetting price objectives?
Ok, some who are new in Fibonacci trading I suggest to Google up those words I mentioned above, if you do not understand them before you continue on.I will be showing a system that I personally created myself after about 2 years studying Fibonacci's ups and downs via trial and errors that I have taken into account too. It is called Eagle's Fibonacci System. It is a rather very simple system, but to get it effective it took rigorous testing and trials. And this is the first time I am revealing it publicly to my very first crowd here in FXEgypt representing FXMalay. sm_cool
In the Excel file as attached below, you will find a calculator that is colour shaded with many ratios ranging from 1.618 to -1.618 and also a column beside it on the left stated "high" and "low". Most effective daily trading or day trading, time frame to be used is daily with data range from 8am (Malaysia time) till next day 8am(Malaysia time). If you ask why do I use 8am Malaysia time rather than 5am, well my testing showed it goes well from 8am..But if you do want to use 5am, it is no problem, you can test it out.
All you need to do is enter the day's high and low from the data range of 8am till 8 am the next day. Then, the ratios will be calculated for you directly on the file. Each ratio is a Fibonacci support/resistance level; example: if price of a certain pair is at between 0.382 and 0.5 and the trend is going up, this means 0.382 is a support and 0.50 is the immidiate resistance level. This is the same for other ranges of ratios too.
The reason I call it a system is because, example you enter a long at Fibonacci support at 0.382, so suggested tp is at 0.5 or if expected it can go higher, then any other ratio after 0.382 with a sl of 0.236 or lower.If day trading I would suggest to use the ratio immidately below the entry ratio. But if you a swing trader maybe you can set a better sl and tp.
What actually is been done by this is system is eliminate the uncertainty to get a swing high and low, eliminate the uncertainty of range of data to be used for the swing high and low, and to eliminate the uncertainty on when to use extension, retracement and projections. This means the file as attached covers everything you need to trade via Fibonacci, without difficulty of uncertainty of data.
Of course accuracy of prices generated sometimes are not exact, give it a +- of 5 to 10 pips. But at times tp might not get hit, due to other reason such as thru FA. But thru experience using it, it is very accurate.
Any questions regarding this system, I will try my best to answer ok.
Originally Posted by atcom
But take note its not just an entry signal, you need to do some analysis first on the trend if possible, then you can get a clearer picture. 
