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Why not to use Fibonacci ratios? [Video]

Are Fibonacci numbers' ratios magical numbers that can generate effective signals in trading? We traders are constantly learning, and an important skill is identifying the end of a cycle because that's when a trade is born. I have dedicated my professional career to identifying different patterns that are effective for training my clients. After studying Fibonacci ratios for years, I found that they do not provide an ideal way to enter the market. The less precision we have in entering, the higher the risk and the lower our account performance will be.

After testing various ways to obtain support and resistance that help guide us and protect our trade during the pullback, I have concluded that liquidity zones, which are simply those places where most stop orders are located, are the ideal places to identify the possible reversal zone. Once the price has turned and we decide to enter the trade, we can use that zone as a level to set the stop loss.

Everything is easier with a real-life example; in the video, we go step by step to explain this viewpoint with the goal of providing you with a practical technique that you can start applying from this moment to move forward with your trading. We use this technique, along with others that come from price action, daily in our membership, applying them to live markets. To start boosting your trading from today.

Author

Juan Maldonado

Juan Maldonado

Elliott Wave Street

Juan Maldonado has a University degree in Finance, and Foreign trade started his trading career in 2008. Since 2010 has been analyzing the markets using Elliott Wave with different strategies to spot high probability trades.

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