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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 caught in chart churn ahead of Wednesday’s HCOB PMIs, US ADP jobs figure

EUR/USD caught in chart churn ahead of Wednesday’s HCOB PMIs, US ADP jobs figure

EUR/USD spent Tuesday in a churning pattern, cycling just below 1.075 as the pair grapples with finding momentum. Key labor data from the US looms ahead on Friday, and EU economic figures remain scattered throughout the back half of the trading week.

EUR/USD News

GBP/USD extends upside above 1.2650, eyes on US data/FOMC Minutes

GBP/USD extends upside above 1.2650, eyes on US data/FOMC Minutes

The GBP/USD pair trades in positive territory for the fifth consecutive day around 1.2688 on Wednesday during the early Asian session. The USD Index declines below the 106.00 hurdle, which supports the major pair. Investors await the US June ADP Employment Change, ISM Services PMI, along with the FOMC Minutes, which are due later on Wednesday. 

GBP/USD News

USD/JPY extends gains above 161.50 ahead of US data, Fed Minutes

USD/JPY extends gains above 161.50 ahead of US data, Fed Minutes

USD/JPY trades on a stronger note above 161.50 after reaching a new high for this move near 161.75 during the early Asian trading hours on Wednesday. Market players remain focused on the possible Japanese FX intervention, which could cap the pair’s upside. US data and Fed Minutes awaited. 

USD/JPY News

Editors’ Picks

AUD/USD stays directed toward 0.6700 after strong Aussie data, weak China's PMI

AUD/USD stays directed toward 0.6700 after strong Aussie data, weak China's PMI

AUD/USD holds higher ground toward 0.6700 in Asian trading on Wednesday. The pair finds fresh bullish impetus after the Australian Retail Sales data beat estimates with 0.6% YoY in May. Weak China's Caixin Services PMI data fails to deter Aussie buyers. Eyes turn to US data and Fed Minutes. 

AUD/USD News

USD/JPY extends gains above 161.50 ahead of US data, Fed Minutes

USD/JPY extends gains above 161.50 ahead of US data, Fed Minutes

USD/JPY trades on a stronger note above 161.50 after reaching a new high for this move near 161.75 during the early Asian trading hours on Wednesday. Market players remain focused on the possible Japanese FX intervention, which could cap the pair’s upside. US data and Fed Minutes awaited. 

USD/JPY News

Gold price remains confined in a range below 50-day SMA, FOMC minutes in focus

Gold price remains confined in a range below 50-day SMA, FOMC minutes in focus

Gold price continues with its struggle to gain any meaningful traction on Wednesday. Traders seem reluctant and prefer to wait for more cues about the Fed’s rate-cut path. Investors look to FOMC minutes for some impetus ahead of the NFP report on Friday.

Gold News

Celebrity meme coins controversy continues amid Pump.fun revenue dominance

Celebrity meme coins controversy continues amid Pump.fun revenue dominance

Meme coin generation platform Pump.fun outperformed the Ethereum blockchain in daily revenue on Tuesday after raking in $1.99 million. Following this achievement, a celebrity meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.

Read more

Benefit of the doubt: US consumer confidence and elections

Benefit of the doubt: US consumer confidence and elections

Despite widespread expectation for the US economy to be in recession in 2024, that fate has been avoided thanks to a resilient consumer. Yet it is difficult to square this undaunted spending with consumer confidence and sentiment readings that are lackluster at best.

Read more

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