The Forexkid - Your forex ebooks provider

Fibonacci is another indicator but unlike other indicators, it is found in the category of leading indicators and is the opposite of lagging indicators. If we come to achieve some level of mastery of the Fibonaci tool, I do believe that we would be able to minimize our losses greatly and consequently maximize our profits.

There are several guides already out there which details the use of fibanacci in trading and I do suggest that one should look for these and read as much as they can. However, mastering the fibonacci in trading cannot be achieved only by reading ebooks and online guides but requires quite a lot of practice and chart time. Once your eyes get used to the fibonacci levels on that charts, you would somehow be able to guess the levels where price is suppose to meet support or resistance without the use of any other indicators.

There are some key levels in the fibanaci sequence which should be closely monitored because price will usually stall and/or reverse at such levels because these levels usually show some resistance to the market impulses such as the 61.8% or the 38.2% retracement. If you are new to trading and you are first reading this article, I am pretty sure you have not idea what I am talking about and this is why you should download the ebooks from the link below and start reading them. If you pursue the path of fibonacci with enough determination to succeed, sooner or later you would become a master in the use of fibonacci in your trading and fibonacci retracement and extensions would become the crucial tools in your trading toolbox. You can find some good fibonacci manual from the link below.