Hello Dear Trader ..                    

In this article i would like to share with you few tips that can help you in Trading with Fibonacci and enable you to pick the real powerful trades so, without further delay let's get started ..   

Note : Click on any Image for more clear chart 

1 - Choose your wave correctly :

The idea of using Fibonacci Retracement Levels is to search for  a strong move to the up or down side then waiting to enter again with the direction of that move hoping that it will continue so, there is no point if you draw your Fibs in a consolidation area then wait for a price response !!      

2 - Use Round Numbers :  

Since Fibonacci trading involves many psychological factors we should add as much as we can to the power of these factors and Round Numbers is a great trading tool that have a psychological power on the chart especially when a round number is located at the same area of a Fibonacci level .. 

For more information about Round Numbers see the following post :

Trading Round Numbers | Trading Lectures

3 - Search for Fibonacci Clusters :               

 Fibonacci Cluster is nothing  more than 2 or more Fibonacci levels located at the same area or trading zone and this will make that zone or price level more powerful than if it was a single Fibonacci level .. 

4 - Use previous Highs and Lows :

I personally don't like to trade a pure psychological level either it was a Fibonacci Cluster or a Round Number ... etc but, i like to include a reason from the Price Action it self to be more comfortable in taking that trade and definitely  previous Highs and Lows will provide you with great trading opportunities with less risk and more winning probabilities .. 

Finally i hope that these few tips would help you in your trading and having more profitable trades and i also want to say that Fibonacci is really a magic tool when you use it in it's right context so, spend your time and effort to understand this tool in more depth and i believe you will like it .. ☺

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