This is an article I wrote but its the same if I would of posted it here. How to trade the fibonacci can lead to some serious profits. This article has charts as examples. I think you find the "Fibo" can make a difference in trading.

The Art of Fibonacci Trading

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Fibs and fib extension show area of support and resistance. This makes an excellant trading tool. They will also give tarket areas.

The biggest problem is putting them precisily on the chart. It takes pratice and a good rule of thumb is the should match pretty close to the resistance and support areas.

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he Fibinacci number sequence (1,1,2,3,5,8,13,21,34…..) is constructed by adding the first two numbers to arrive at the third. The ratio of any number to the next larger number is 62%, which is a popular Fibonacci retracement number. The inverse of 62%, which is 38%, is also used as a Fibonacci retracement number. (used with the Elliott wave theory, see hereunder)
Gann numbers:
W.D. Gann was a stock and a commodity trader working in the 50’s who reputedly made over $50Mio in the markets. He made his fortune using methods which he developed for trading instruments based on relationships between price movement and time, known as time/price equivalents. There is no easy explanation for Gann’s methods, but in essence he used angles in charts to determine support and resistance areas and predict the times of future trend changes. He also used lines in charts to predict support and resistance areas.To explain it properly i have taken this image from the other site.

I'd be lying if I said I fully understood this, but it's very interesting, Thanks.

Seems to be a good amount of info available on the web about this guy's trading methods - here is one of the links I found:
Cycles Research Institute - Gann

I am obliged if you liked it & understood a little bit.

If there is interest I can provide more detail. The truth of the matter is that fibs work, They are not perfect but I make lots of plays using them.

__________________
"People are not remembered by how few times they fail, but how often they succeed."
- Thomas Edison

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Yes I do like it and understand some of it, Thanks again. Need to study more about this and actually get some money together (one of these days, LoL) to actually try making some money from the great information people have been posting.

I'd appreciate that and I am sure others would also, Thanks GreenCat. Don't forget to dumb-it-down a bit for me like in a Fibonacci Trading For Dummies book, LoL.

Ok. I trust we know what the fibs are and a little knowledge on how to put them on the charts. I want to concentrate on a trading plan and how to use them with great effectiveness.

I am going to put together a lot of charts in a step by step procedure, hopefully explaining in detail how it is applicable to trading. However, I dont expect to nail down every inticate detail, therefore, I will answer questions to the best of my ability..

Give me a little time to set this up.

__________________
"People are not remembered by how few times they fail, but how often they succeed."
- Thomas Edison

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Thank you.

1st determine the trend. This chart shows our bias should to the long side. This does not mean we can't counter trade. In later studies we will go into counter trading.

Practice drawing the fib correctly. The next chart we will use fib expansions.

Metatrader 4 is a free program for the forex. The fibs are already built in and can be modified easily to be just like mine. I don't use all the fib numbers to keep clutter down on my chart. The ones I use are the ones we pay attention to.



If we were to break over the 100 fib, it would not be an entry. We always will wait for the pullback and try the play on a revelent fib line. I will explain more in depth later.

__________________
"People are not remembered by how few times they fail, but how often they succeed."
- Thomas Edison

http://motorbicycling.com/
motorbicycles that get over 150 MPG. Stop by and learn how to beat the gas wars.....

The Green Revelotion has begun. Save the planet. Stop by our green energy site at:
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Articles by Gwitt
http://www.triond.com/users/GWitt