What's up everybody it's Johan Nordstromfrom Trading Walk and in this video I want to show you how to use theperfect Fibonacci trading strategy So the way you use this strategy is basically you want a strong move and then you want a retrace into support and enter on a buysignal with low risk and high reward so looking at the EURUSD chart here the 15-minute chart each candle here represent 15 minutesand this is MetaTrader 4 I have the link below where you can get a free accountand download this software so how do you use this strategy well you find a strongmove and when you get a strong move like this one here from a bottom-up to a highwith strong bullish candles you want to click the Fibonacci tool and you drawthe tool from the high to the low and if I right click on this you can see mysettings here so the levels and the color so when you have this move hereyou want to see a retrace or pull back down to the 50% level which is a veryvery strong support level and at the 50% you want to see candlestick price actionshowing you that the buyers are in control so when you come down to 50% youwant a bullish engulfing and the bullish engulfing is a candlestick where youhave a red candlestick and then the next candle after that one is a greencandlestick which wraps around the red candlestick so you see this is not abullish engulfing it's almost a bullish engulfing but the the box here is notbigger than the red box before it so this is not a bullish engulfingnot this one either but this one is so when you get thisright here you right-click buy limit at the close of the bullish engulfing then you place your stop-loss below the 50% and you place your take profit at 161.
8% just below it but sometimes you will see that price getssome resistance at the hundred percent so if you see that when you getresistance you can close out some of your position so you see you get some resistance but then you get a pullback down hereinto the 50% again and as long as this doesn't break the 50% and what I meanby break I mean at least two candles closing below it with some separationyou see these are still at this zone so it's still valid now you want to see abullish engulfing here again and you don't get a bullish engulfing until hereso you can place your buy limit here at the close of this candle which wrapsaround this one and you double-click and enter your stop loss and take profit soyour stop-loss will be below here and your take profit will be at 161.
8%so you see this first trade here didn't get the full target but you made somemoney but on this second trade here you made your full profit and you seethis is at least three to one reward risk so your risk is a third of yourreward so if you can find these types of trades and trade them well you will beprofitable in trading after you had a win like that you can remove this youcan draw a Fibonacci from the highest high to the low and start looking at anew signal so you see here that when we come down to the 50% the candle afterthat one is a bullish engulfing because the green box wraps around thered one so you enter by limit and you would place your stop-loss belowthe 50% then below the lowest low and you place your take profit atthe 161.
8% and you can see here what a beautiful trade you enter hereyour stop is down here and price just shoots up right into your profit targetand this was a nice win as well so you can see here this is a very powerfulstrategy if you enjoyed this video and want more videos like this pleasesubscribe to my youtube channel I really appreciate it and if any questions atall send me an email and I'll be happy to help you if you want to downloadMetaTrader 4 and start using the Fibonacci the link is also below goodluck happy trading and to your success.
