Pin Bar Forex Trading Strategy – The 50% Retracement Myth

 

How To Use Fibonacci Retracement In Forex. This is a rule that exists in Elliott Wave theory that helps the most professional traders forecast triangle patterns way before everyone else. The 50% Fibonacci Retracement levels actually has nothing to do with fibonacci nor Elliott Wave.

Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Sticking to longer timeframes when applying Fibonacci sequences can improve the reliability of each price level. This trade is very well laid and easy to understand. The more premium entries would be above this in the last pips i.

2. Don't Ignore Long-Term Trends

How To Use Fibonacci Retracement In Forex. This is a rule that exists in Elliott Wave theory that helps the most professional traders forecast triangle patterns way before everyone else. The 50% Fibonacci Retracement levels actually has nothing to do with fibonacci nor Elliott Wave.

After finding the potential trade signal, decide to enter at market prices, or wait for a pull back to get your stop loss tighter to reduce overall risk. I personally feel that when a trader looks for the price action signal first, then matches up the supporting factors confluence they tend to make better trades.

I hope this article clears some confusion about Fibonacci levels. Personally, I only get a handful of these setups every month on the daily charts, but when you see these swing retracements inside a general trend movement, its wise to mark them on your charts and then look for a price action confirmation entry signal. I just found thos out last week on the chart and I saw it gob ng more profits and I started searching more about it and I saw your article. You just confirmed it to me that this strategy works out perfectly.

Hi Nial Thanks for explaining the subject of Fibonacci levels clear and understandable in relation to trading forex. Hey Nail… First of all, I would like to thanks a tonne for you nice articles which will boost and increase our confidence levels with Forex Trading….. Do you personally recommend this. Mister Nial Fuller, I only just became familiar with your work a couple weeks ago. This past weekend I read this article, and then yesterday three lovely setups appeared on the daily charts at the same time.

I took all three and increased my account by over 41 percent. All of my money is off the table for these trades, but it will be interesting to see how much further they go. Thank you so very much! Thanks Nial that clears a lot of things up for me. Your explanations are very refreshing and easy to understand. Your style only reinforces the idea that trading should be kept simple. HI Nial Its a great article and website. Thank you for your time. Another arrow in my quiver.

Nial, I have just found your website and cannot wait to get stuck into all this free trading advice you have on your website. I love price action trading and have only recently realised how nice it is to trade without indicators. This is a great looking setup to minimize risk while increasing the probability that the trade will work out!

Glad I found you Nial! Hey Coach as always you keep showing great potential setup. I will now start using this one into my trading plan. This is so good.. It shouldnt be here for free.. This is a very special set up for me nial.. Am really improving in this business industry through the knowledge I get from you.

Thank you for price action candles,it is very interesting and now I am practicing it. It is very clear to me. Thanks, this is a powerful strategy. How come I have never noticed it at all? Well done, I deeply grateful for this eye opener strategy. It is always easy to make things simple like what you did.. Once again Thanks for the Advance course. Thanks for this setup Nial. Good to know someone is thinking like the big players. Pretty much center point of the sell and buy zones also.

I enjoyed this tutorial. It was explained clearly and concisely so I can understand it and use going forward. Thanks Nial for showing current examples. Keep them coming, so we can improve our trading. I am fascinated by the way price action works. I need a good instructor. I need to have some success in my trading career……………Jim. Hope to get such signal in near future.

Thank you for all this stof you have the most of the time small text but i tell us much to much thanks for every thing. And the videos are great. Very useful tips here Nial and the explanation is crystal!

You are helping me to see the markets in such a simple way — Thanks again! Nial, Super example…appreciate your continued efforts helping the Forex trading public… Thanks much. Nial — you always do a good job putting things in a nutshell. Thanks for this great article.

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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

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We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

See the chart below for more help: Checkout Nial's Professional Trading Course here. Related Price Action Trading Patterns: Noble Johnfaith November 16, at 2: Jason Taylor May 15, at 3: Elvin May 1, at Thanks Nial you the best. Ibrahim May 17, at Thank Nial for the lesson i hope this article can help me in trade strategy. Thank you very much. Thanks Nial, this was very informative.

Venkat January 10, at 8: Tshitso July 7, at 5: Mimi February 8, at 2: Incorrect analysis and mistakes are created once the reference points are mixed—going from a candle wick to the body of a candle. Figure 1 shows consistency. Fibonacci retracements are applied on a wick-to-wick basis, from a high of 1. This creates a clear-cut resistance level at 1.

Figure 2, on the other hand, shows inconsistency. Fibonacci retracements are applied from the high close of 1. This causes the resistance level to cut through several candles between February 3 and February 7 , which is not a great reference level.

By keeping it consistent, support and resistance levels will become more apparent to the naked eye, speeding up analysis and leading to quicker trades. For related reading, see: This narrow perspective makes short-term trades more than a bit misguided. By keeping tabs on the long-term trend, the trader is able to apply Fibonacci retracements in the correct direction of momentum and set themselves up for great opportunities.

This is a perfect spot to go long in the currency pair. After a run-up in the currency pair, we can see a potential short opportunity in the five-minute timeframe Figure 4. This is the trap. By not keeping to the longer term view, the short seller applies Fibonacci from the 2. This short trade does net the trader a handsome pip profit, but it comes at the expense of the following pip advance. Keeping in mind the bigger picture will not only help you pick your trade opportunities, but will also prevent the trade from fighting the trend.

Using the Big Picture. Applying additional technical tools like MACD or stochastic oscillators will support the trade opportunity and increase the likelihood of a good trade. Exploring Oscillators and Indicators.

Applying our Fibonacci retracement sequence, we arrive at a Following the retracement lower, we notice the stochastic oscillator is also confirming the momentum lower. Now the opportunity comes alive as the price action tests our Fibonacci retracement level at A trader taking this position would have profited by almost 1.

Day trading the foreign exchange market is exciting, but there is a lot of volatility. For this reason, applying Fibonacci retracements over a short timeframe is ineffective. The shorter the timeframe, the less reliable the retracements levels.