Saturday, November 25, 2006


There was an interesting question e-mailed to me yesterday.
Dr. Karena wrote:

"It seems that Ur Cap Ayam indicators largely based on Fibonacci Tools? Can Fibonacci Trading become Safer & Profitable?"

For me, since I'm a swing/short term trader - Timing is the most crucial element in trading. It is important to know what and when to buy. All the Fibonacci signals is the result from geometrical interpretation of market price patterns. All the Fibonacci mechanism are based on understanding of investors' behavior expressed in TOP and BOTTOM formations.

The most beautiful things about Fibonacci is that, in certain instances, Fibonacci can forecast trend changes in PRICE and TIME. However forecasting in this way, does not mean we can say in advance whether a turning point is going to be triggered, but if a precalculated price target is reached, we can safely act accordingly.

Working with Fibonacci actually is very easy than it seems to be, it only takes nothing more than swing highs and lows and the GOLDEN RATIO. The greatest difficulty is choosing correct swing highs or lows.

Using the Fibonacci tools will not ensure that we never suffer losing trades, but we can expect the majority of trades to be profitable.


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