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04/13/2007 Archived Entry: "3 Fibonacci trading Questions"

> Graham wrote:
> Neal
>
> Let me begin by saying how much I enjoyed your Fibonacci seminars. They certainly demystify a complex subject and I couldn't recommend them more highly to anyone interested in this topic.
>
> However, having said that, I am having some difficulty taking my new found knowledge and using it in the real world.
>
> To provide some background I am learning to trade the GBP/USD and nothing else. I look at the day, 1 hour, 15 minute and 5 minute charts. I use candles, pivot points and trend lines in addition to Fibonacci retracements and expansions.
>
> My questions: Can retracements help determine direction? How do you know when to change from support retracements to resistance retracements? Do you ever use both on the same chart?
>
> Regards
>
> Graham
> Melbourne
> Australia

Graham,

Thank you for the kind comments. I'm happy that you enjoyed the seminars. Study them again in the future, you will pick up more aspects that were missed the first time.

Answering your questions..

1) Retracements can help you to get a sense of whether the trend is strong or weakening, but they do not determine the trend.

2) You need a trend indicator to determine when the market wants you to trade long or short. I have an excellent video seminar on that called "Trading the Trend" here:
http://www.fibmarkets.com/videoseminar/

3) Yes, I often have both on the same charts!

-Neal.