Are Fibonacci numbers' ratios magical numbers that can generate effective signals in trading? We traders are constantly learning, and an important skill is identifying the end of a cycle because that's when a trade is born. I have dedicated my professional career to identifying different patterns that are effective for training my clients. After studying Fibonacci ratios for years, I found that they do not provide an ideal way to enter the market. The less precision we have in entering, the higher the risk and the lower our account performance will be.

After testing various ways to obtain support and resistance that help guide us and protect our trade during the pullback, I have concluded that liquidity zones, which are simply those places where most stop orders are located, are the ideal places to identify the possible reversal zone. Once the price has turned and we decide to enter the trade, we can use that zone as a level to set the stop loss.

Everything is easier with a real-life example; in the video, we go step by step to explain this viewpoint with the goal of providing you with a practical technique that you can start applying from this moment to move forward with your trading. We use this technique, along with others that come from price action, daily in our membership, applying them to live markets. To start boosting your trading from today.


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Editors’ Picks

EUR/USD struggles for direction amid USD gains

EUR/USD struggles for direction amid USD gains

EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.

GBP/USD drops to daily lows near 1.3360

GBP/USD drops to daily lows near 1.3360

Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.

USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation

USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation

The USD/JPY pair trades on a negative note near 155.75 during the early Asian session on Monday. The US Dollar softens against the Japanese Yen amid the prospect of interest rate cuts by the US Federal Reserve next year.


Editors’ Picks

When are the China Retail Sales, Industrial Production and how could they affect AUD/USD?

When are the China Retail Sales, Industrial Production and how could they affect AUD/USD?

The National Bureau of Statistics of China will publish its data for November at 02.00 GMT. AUD/USD trades on a positive note on the day in the lead up to the China Retail Sales, Industrial Production data. The pair gains ground as US Dollar softens amid the prospect of interest rate cuts by the US Federal Reserve next year.

USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation

USD/JPY weakens below 156.00 amid Fed rate cut outlook, BoJ rate hike anticipation

The USD/JPY pair trades on a negative note near 155.75 during the early Asian session on Monday. The US Dollar softens against the Japanese Yen amid the prospect of interest rate cuts by the US Federal Reserve next year.

Gold poised to challenge record highs

Gold poised to challenge record highs

Gold prices added roughly 3% in the week, flirting with the $4,350 mark on Friday, to finally settle at around $4,330. Despite its safe-haven condition, the bright metal rallied in a risk-on scenario, amid broad US Dollar weakness.

Week ahead: US NFP and CPI, BoE, ECB and BoJ mark a busy week

Week ahead: US NFP and CPI, BoE, ECB and BoJ mark a busy week

After Fed decision, dollar traders lock gaze on NFP and CPI data. Will the BoE deliver a dovish interest rate cut? ECB expected to reiterate “good place” mantra. Will a BoJ rate hike help the yen recover some of its massive losses?

Big week ends with big doubts

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

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