What's up everybody it's Johan Nordstrom
from Trading Walk and in this video I
want to show you how to use the
perfect Fibonacci trading strategy
So the way you use this strategy is basically 
you want a strong move and then you want a
retrace into support and enter on a buy
signal with low risk and high reward so
looking at the EURUSD chart 
here the 15-minute chart
each candle here represent 15 minutes
and this is MetaTrader 4 I have the link
below where you can get a free account
and download this software so how do you
use this strategy well you find a strong
move and when you get a strong move like
this one here from a bottom-up to a high
with strong bullish candles you want to
click the Fibonacci tool and you draw
the tool from the high to the low and
if I right click on this you can see my
settings here so the levels and the
color so when you have this move here
you want to see a retrace or pull back
down to the 50% level which is a very
very strong support level and at the 50%
you want to see candlestick price action
showing you that the buyers are in
control so when you come down to 50% you
want a bullish engulfing and the bullish
engulfing is a candlestick where you
have a red candlestick and then the next
candle after that one is a green
candlestick which wraps around the red
candlestick so you see this is not a
bullish engulfing it's almost a bullish
engulfing but the the box here is not
bigger than the red box before it so
this is not a bullish engulfing
not this one either
but this one is so when you get this
right here you right-click buy limit at
the close of the bullish engulfing
then you place your stop-loss below the 50% and you 
place your take profit at 161.8% just below it but
sometimes you will see that price gets
some resistance at the hundred percent
so if you see that when you get
resistance you can close out some of
your position so you see 
you get some resistance but
then you get a pullback down here
into the 50% again and as long as this
doesn't break the 50% and what I mean
by break I mean at least two candles
closing below it with some separation
you see these are still at this zone so
it's still valid now you want to see a
bullish engulfing here again and you
don't get a bullish engulfing until here
so you can place your buy limit here at
the close of this candle which wraps
around this one and you double-click and
enter your stop loss and take profit so
your stop-loss will be below here and
your take profit will be at 161.8%
so you see this first trade here didn't
get the full target but you made some
money but on this second trade here
you made your full profit and you see
this is at least three to one reward
risk so your risk is a third of your
reward so if you can find these types of
trades and trade them well you will be
profitable in trading after you had a
win like that you can remove this you
can draw a Fibonacci from the highest
high to the low and start looking at a
new signal so you see here that when we
come down to the 50% the candle after
that one is a bullish engulfing because
the green box wraps around the
red one so you enter by limit
and you would place your stop-loss below
the 50% then below the lowest low and
you place your take profit at
the 161.8% and you can see here
what a beautiful trade you enter here
your stop is down here and price just
shoots up right into your profit target
and this was a nice win as well so you
can see here this is a very powerful
strategy if you enjoyed this video and
want more videos like this please
subscribe to my youtube channel I really
appreciate it and if any questions at
all send me an email and I'll be happy
to help you if you want to download
MetaTrader 4 and start using the
Fibonacci the link is also below good
luck happy trading and to your success
