When it comes to online gold forex trading, having a decent strategy is a surefire way to ensure that your trading gets the best results possible. One of the most effective online gold forex trading strategies available is the Fibonacci Pivot points strategy. This sounds far more confusing than it actually is. It works by utilizing the Fibonacci retracements as standard and then uses this information in conjunction with the daily pivot levels. The results from this should be able to provide trade entry points. The parameters chosen for the Fibonacci levels are essentially up to you, however the most common choices are 38%, and 50%.
Daily Trading with the Fibonacci Pivot Strategy
1. First of all you need to do a bit of digging. Look at the trading session for the previous day and also the days before it. Find the average true range for the last few periods of trading. Ranging back five days should be more than enough. Following this you should look for a currency pair entry that exceeds the previous true range.
2. Once the current trading sessions begins, draw fibs. If the current price has risen higher than the central pivot of the day then draw low to high. If the current price has dropped below the central pivot of the day then draw high to low.
3. This is where the Fibonacci trading techniques really come into play. Before you make any trading decisions look for a convergence between the central pivot of the day and the levels of Fibonacci retracement.
4. If you are feeling extra lucky, or you just enjoy living on the edge, then you may want to enter as soon as the confluence has been retraced by the price. However, if you are someone who likes to play a little more safe then you can wait around for a bit. If the trade is good then you will receive a confirmation in the form of a candle signal. Entering before you get the confirmation is putting yourself at high risk, however it could also yield some impressive rewards.
5. Finally, ignore all the other points and remember one thing before you start putting the strategy into practice. Test it out! There is no need to put yourself under undue pressure. Sign up for a free demo account and test out the strategy until you get a good feeling for the timing and use of the strategy.
Take your online gold forex trading to the next level with the use of a killer strategy like the Fibonacci Pivot.
