Please, I know this question might be somehow, and that is because I am a newbie. Please I want to know how effective the Fibonacci Strategy is. Can anyone explain how this strategy can help me make profit?
Well,
First read up on Fibonacci (what it is, how it works, etc): School of Pipsology Fibonacci
Then: open a demo with your preferred broker ( holla back if you need help ) and start practicing
Ask questions as you go along in your preferred thread ( or open a new thread in the appropriate forum )
All the best in your journey!
Cheers
Fibonacci is used in all kinds of ways. I use it to mark TP levels and stops too. Some use it to mark pivot areas and support and resistance. Trend traders like myself find it more useful for the former.
It is pretty accurate with that because to defy that logic would mean risk reward ratios have been negatively altered by most traders.
I’ll do a post interpreting how I use Fib to TP but use only in a trend not in a range.
Video as promised
You should try to look up how to mark higher highs, higher lows, lower lows and lower highs. these are points used by swing traders. Damirs books are pretty good at explaining this. I cant remember which is best but they are all ok.
http://www.amazon.co.uk/Trade-Price-Action-Trading-System-ebook/dp/B00850ZPCA/ref=pd_sim_kinc_1
Fib is used for a few things but its used to work out where the price might bounce on a retrace. So if the market is in an up trend, you would expect that the price will hit resistance if it retraces 50% or 68% of the distance from the last HL and the most recent HH. There is expected behaviour of the next leg if there is a bouce off one of these levels.
There are a lot of variants but this will get you started.
And like dudest said. get a demo and try it out.
Only dumb question is the one you don’t ask. Everyone was new once and everyone asked what they thought was a dumb or stupid question. One of the steps towards success is about gathering information. Anyway the short answer is yes. I use a Fibonacci strategy.
Watch this video first. How to Trade with Fibonacci Levels - YouTube
Watch this one second. Andrei Knight - Fibonacci… Easy as ABCD - YouTube
They are both about an hour long. But you will never make a better investment with time. These vids are free, but these traders offer things to buy. I am not vouching for either traders purchased products as I have not tried them. But I have ordered the first one’s book.
If you watch these video’s in order pat attention and with a little (and I mean little), you will have a complete understanding of Fibonacci, retracements and extensions and a very simple strategy that always gives you atleast a projected 3:1 risk reward ratio.
babypips said Fibobacci is self fulfilling prophecy, the same with Pivot Point too 
Yes, but it should be noted that these things are nessesary but not sufficient conditions for a good trade. I.e. they need confirmation. Its not like you should always trade the levels, you should just trade them when they are being respected by the market. Same goes for EMAs
There are loads of books and online materials on Fibonacci. Better you get an idea before going to test it as everyone suggested here
Thank you for the advice. Thanks also to all who have given their opinion. Now I know it is something worth giving a try.
never ,never
Hi, read this - forexmarkethours, and especially this - forexdarkside
don’t let yourself be overloaded, trade smart and take the risk
all above is the core of the big trading and pros approach
good luck!