Powerful Fibonacci Trading Strategy For Beginners (GOLD FOREX)
I am going to reveal a powerful fibonacci trading strategy that I learned many years ago. It combines structure analysis, fibonacci retracement and extension levels and candlestick analysis, and it is suitable for beginners.
Step 1
Find a trending market - the market that is trading in a bullish or in a bearish trend on a daily time frame.
AUDUSD is trading in a bullish trend on a daily.
Step 2
Execute structure analysis - identify key horizontal and vertical structures on a daily time frame.
Have a look at key structures that I spotted on AUDUSD.
Step 3
Draw fibonacci retracement levels.
Here are the important ratios you should look for: 382, 50, 618, 786.
In a bearish trend,
draw fibonacci retracement levels from the high of the trend to current low based on wicks.
In a bullish trend,
You should apply fibonacci retracement from the low of the trend to a current high based on wicks.
Take a look how I draw the retracement levels,
I took the low of the trend and the high of the trend.
Step 4
Find confluence .
Look for fibonacci numbers that match - lie within key structures that you identified.
Support 1 matches with 382 retracement.
Support 2 matches with 786 retracement.
Remove other ratios from the chart.
Step 5
Wait for a test of one of the fibonacci levels that match with key structure
The price perfectly tested 382 retracement level.
Step 6
Wait for a confirmation on a 4h time frame.
Our confirmation will be a formation of an engulfing candle - a strong candle that completely engulfs the entire range of a previous candle with its body.
In a bearish trend, we will look for a formation of a bearish engulfing candle. Bearish engulfing candle indicates a strong selling pressure and the strength of the sellers.
In a bullish trend, we will look for a bullish engulfing candle. It indicates a strong buying reaction and imbalance.
Have a look at a bullish engulfing candle that was formed on AUDUSD on a 4H time frame after a test of 382 retracement.
Step 7
Open a trading position, set stop loss and choose the target.
After you spotted an engulfing candle, open a trading position.
Open short after a formation of a bearish engulfing candle and open long after a formation of a bullish engulfing candle.
If you sell , your safest stop loss will be 1.272 extension of the last bullish impulse on a 4H.
If you buy , your stop loss will be 1.272 extension of the last bearish impulse on a 4H.
In our example, our stop loss will be 1.272 extension of a bearish impulse leg on a 4H time frame. The extension is based on high and low of the impulse.
If you short , your take profit will be the closest key structure support on a daily.
If you buy , your take profit will be the closest key structure resistanc e on a daily.
Being applied properly, the strategy should generate 60%+ winning rate.
Always remember to check your reward to risk ratio before you open the trade. It should be at least 1.1/1.
Also, before you place a trade, always make sure that you trade WITH the trend and take only trend-following trades.
The strategy works perfectly on Forex, Gold, Silver, Oil, Indexes.
Good luck in your trading.
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I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Profitabletradingstrategy
Learn Profitable Doji Candle Trading Strategy (GOLD, FOREX)
In the today's post, I will share my Doji Candle trading strategy.
This strategy combines the elements of multiple time frame analysis, price action and key levels.
Step 1
Analyze key levels on a daily time frame.
Identify vertical and horizontal supports and resistances.
Here are the key structures that I spotted on AUDUSD.
Step 2
Look for a formation Doji Candle on a key structure.
This rule is crucially important: we will trade only the Doji candles that are formed on key levels.
From key supports , we will look for buying , and we will look for shorting from key resistances .
Look at this Doji Candle that was formed on a key daily support on AUDUSD.
Step 3
Look for a horizontal range on a 4h/1h time frames.
Doji Candle signifies indecision . Quite often, you will notice the horizontal ranges on lower time frames when this candlestick is formed.
Here is a horizontal range that was formed on a 4H time frame on AUDUSD after a formation of Doji.
Step 4
Look for a breakout of the range.
To sell from a key resistance, we will need a bearish breakout of the support of the range. That will be our bearish confirmation.
To buy from a key support, we will need a bullish breakout of the resistance of the range. It will be our bullish signal.
Here is a confirmed breakout of the resistance of the range with a 4H candle close above. That is our bullish confirmation on AUDUSD.
Step 5
Buy aggressively or on a retest.
After you spotted a confirmed breakout of the range, open a trading position aggressively or on a retest.
Personally, I prefer trading on a retest.
If you sell, a stop loss should be above the high of the range and your target should be the closest key daily support.
If you buy, your stop loss should be below the low of the range and a take profit will be on the closest daily resistance.
On AUDUSD, a long position was opened on a retest. Stop loss is lying below the lows. Take profit is the closest resistance.
Here is how this great strategy works!
Always patiently wait for a confirmation! That is your key to successful trading Doji Candle.
❤️Please, support my work with like, thank you!❤️
I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

