Using the Fibonacci Retracement Tool – Price Action Traders Mindset 8

Welcome to Part 8 in the Price Action Traders Mindset series. For those that are here, viewing this series for the first time I highly recommend starting from the beginning.

In this part we go over one of the most popular and controversial tools in the Forex industry. In some cases it can even be referred to as the wonder tool. That tool is called the Fibonacci Retracement Tool. A tool that if used right can help give the trader insight into where the trend may continue on a pair.

Do you see how i just highlighted the word trend in the previous sentence, you see this tool should only ever be used in trending environments. Using in other types of trading environments can be either dangerous or simply not effective, so establishing the trend bias first before using this tool is always best.

In the video above I go over this tool in detail and show how in two markets randomly selected the market seems to respect certain Fibonacci tool values. As seen in the video as well, you will see how the gold number to watch for in trends is the 50% zone to the 61.8% zone area on any retracement. This is a strong turn around zone for many pullbacks in the market.

Understanding Fibonacci – Beginners Definition

fibonacci in forex

Those wondering exactly what Fibonacci is, let me give a quick rundown. It is a variable of numbers that often repeat in all forms of nature, space and time. It also correlates to many aspects of human behavior, plus when used in trading can often measure levels of psychological resistance or support. Therefore understanding this tool in trending markets can be very beneficial overall.

available right now

… On another topic, just wanted to let you all know that The Engulfing Trader Training Series and DVD is officially available for purchase. For those that have not checked this out just yet or have not purchased this series just yet, you can find out all about it by clicking here.

Thanks for reading, watching and subscribing, part 9 will be coming in the next upcoming week so stay tuned to get more.

About Timon Weller

Timon Weller is the professional Trader behind the blog Forex Reviews as well as a Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. Yay again new video!

    I just got triggered sellstop on usdcad at 1.06250 SL 1.07090 … I will use partial exits 1 going to 50% of fibo ret to 1.04920 and another 1.04400 RR is 1 / 1.89 if both targets are met… see how it goes… ;P ofcourse i will exit earlier if i get bullish engulfing on the way to 1.04920. oh yeah and my EA set BE at 1:1 thats 84pips.

    Heres cool website to buy cool Forex/Trading stuff like T-shirts, mugs and wallets. for true forex trading fans..

    Have fun!

    • oh and its daily fib structure if someone is wondering that…

      • actually a better look at it on weekly TF it finds many confluences on that timeframe! I would look to buy usdcad at 1.04400 or 1.03850 when it meets previous weekly highs and bottoms there + Trendline very nice LT buy in my opinion! I set alerts and watch that area closely if it gets there.

  2. Larry Blass says:

    Hi Timon,

    I just wanted to say thank you for all the videos! You are a great help to my Trading!
    I also agree Not to listen to the News Speculations as it always the opposite that happens! Therefore, we lose money!
    From now on I will follow your techniques only! I also bought your Hard version of Engulfing Trader with DVD’s.

    I wanted to know I’m I getting the Bonus book with that order?

    Thank you once again with all your help!


    Larry Blass – Montreal, QC, Canada

    • Hey Larry,
      Thanks for the positive feedback and purchase. The Book is in PDF format ( adobe acrobat viewing and printing ) inside the DVD. So no hard copy of the one. Many print out bonuses though and of course your own copy of The Engulfing Trader DVD to watch whenever.

      So , I recommend printing the Book inside the DVD out for following along or taking notes as well.

      The Bonus with getting the DVD is that everything is in 1080P resolution so crystal clear charts and viewing. It still looks awesome in the digital download version that little boost can make a better experience for learning as well.

      Have a awesome day.


  3. Thank you for the videos this is such valuable information! Thanks again Jim

  4. Thanks very much for the clarity with which you teach,and your generosity in giving these

  5. Thank you Timon, Very well done.

  6. Frank Nilson says:

    Hi Timon, thanks for the great video. It is appreciated. May you have a very prosperous new 2017.

  7. Hi Timon thanks again, I look forward every week to view your videos and info.
    Cheers Graham

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