Forex Trading with Fibonacci Harmonic Trading, Retracements, Gartleys and Technical Analysis

DAX Fibonacci – Long Entry

DAX Fibonacci

Few days ago, I have reported that the DAX may be retracing to 23.6% of its uptrend. I am glad to report that it just did.
DAX opened this morning exactly at the 23.6% Fibonacci Retracement of the uptrend, a level that is strong for two resaons, both the Fibonacci Retracement and the fact that it is exactly on strong support level that has been tested – 5560 level.

Trading: Take long trades now, with stop loss right at 5552 (below the lowest local low). Target is the beginning of the retracement, at 5651.

DAX Fibonacci Retracement

DAX Fibonacci

A possible 23.6 Retracement can be traded at the DAX. As you can see DAX broke its first Top and continued to higher highs in a strong and steep uptrend – however, these strong uptrends have a tendency to retrace which allows us to capitalize from these movements.

Here I would take long trade when price reaches 23.6 level. Note that this level has already been tested as a strong psychological level – and performed as both Support and Resistance (previous top). This should be a high-probability level to take trade on.

Good luck!

AUD\USD Fibonacci Trade

AUDUSD 23.6 Retracement

AUD\USD has been in a strong uptrend for several days. After such strong uptrend it is common for price to retrace to several Fibonacci levels before the continuation of uptrend.

The 23.6% Fibonacci Retracement is at 0.8463 has been tested as Resistance level and therefore is a good candidate for reversal levels. Wait for price to reach this level, and enter upon a reversal confirmation from candlesticks.

GBP\JPY Possible Retracement Trade

Possible retracement trade in the GBP\JPY pair, on 1-hour chart. After a very long and strong downtrend the GBP\JPY is showing signs of a weak retracement. Moreover, the 23.6 level is confirmed by minor Resistance level at the same price.
When price reaches this point, a retracment trader could join the downtrend. First target will be the beginning of the retracement at 148.65.

3 Fibonacci Trades

USDJPY Fibonacci Trade

A potential retracement trade at the USD\JPY. This pair is in a very long downtrend and we could join this trend by entering at a retracement. Price seems to have started to retrace on the 23.6 level but it is a generally weak level. 38.2 is confirmed with previous Support level and should be our entry place.

Trading: If price stops on 38.2% of last downtrend, enter short trade. First profit target will be the 92.5 (the beginning of the retracement).

EURGBP Trade

EURGBP Fibonacci Trade

EUR\GBP is in a strong uptrend since the beginning of august. Here we have a chance of joining this big move with Fibonacci Retracements. The retracement tool plots several potential reversal levels. The 23.6% seems to be a very strong one that has been confirmed by price several times. Look for this level has served as both Resistance and Support.

Trading: If price reaches this level (0.8766), wait for signs of reversal such as bullish candlestick formation. Upon such signal, enter long trade. First target will be the beginning of the retracement (0.8840). Pay attention and confirm that when price approaches this level his bearish momentum is weak and would not break this level.

Momentum can be checked by looking at the size of the candles. Big candles show that the momentum is strong and that sellers have the power in the market. Beware of such scenarios as they frequently sabotaje retracment trades.

USD\CAD Potential Retracement Trade

USDCAD 38.2 Retracement

Potential Short trade at the USDCAD pair. Note the strong and steep downtrend in 30-minutes chart, and the slow and weak retracement that followed it. It looks like price has stopped to regain strength and that the last movement is not an actual trend but merely a retracement.

A confirmation is the fact that 38.2% Retracement is also a Resistance level – this empowers the trade.

Trading: Wait for price to reach 38.2% Retracement level, and wait for it to confirm the trade with Candlestick Formation. When price starts moving in the opposite direction, enter Short trade. First target is the 100% of the trend (the lowest low of the downtrend).

Fibonacci Trade: USD\CAD

USDCAD 38.2 Retracement

Very precise retracement took place at the USD\CAD – note the strength of the trend before the retracement, and the fact that the 38.2 level was also a Resistance level before (see how price tested this level and bounced, before continuing his downtrend). All these resulted in a great retracement that has not yet completed its entire potential.

I expect price to continue its downtrend and reach the beginning of the trend.

Trading: Short Entry at Market, with Stop Loss above 1.0874. Target is the lowest low of the trend: 1.0710.

Fibonacci Trading Signal: AUD\USD 4H

A very nice retracement can be seen at the AUD\USD, in 4-hour charts. After a very steep and strong uptrend, price has began to retrace and is trending downwards very slowly.

Note how the 23.6 Fibonacci Retracement is confirmed by both round Support level at 0.8300 and several touches by price. If price touches the 23.6 level and confirms our entry, we would enter a Long trade.