Hi, its now time for Forex. I am currently learning and start trading Forex real account on Instaforex broker. Mainly I am still struggling to be consistent in profit. I tried many systems, many kind of messy indicators and EA but no luck at all. Until I found this Fibonacci breakout trading system. With this system, I do not have to put any fancy indicators. All I need is the candle stick and fibonacci retracement tool which available on my MT4 platform.
How this Fibonacci breakout system works?
This trading system uses the ordinary support and resistant as the breakout. Fibonacci is used to determine the target or take profit area. Here is the example
On the chart above, EURJPY move higher and make a nice uptrend. On an uptrend, I always mark and watch the supports area. The idea is to sell when price move down and break the support line.
OK on the next chart, I draw a Fibonacci retracement tool from the support to the peak. So, the 100 level must be on the support line. Open SELL when price break this 100 level and use level 161.8 as the take profit level.
Please note, this method is not only catch for reversal. It can be used to trade following the current trend using the same idea.