Introduction
Welcome and thank you for purchasing the “Auto Fibonacci Phenomenon”. The
“Auto Fibonacci Phenomenon” is a complete trading tool designed primarily to
trade the FOREX markets successfully and consistently.
Important: There are many different Fibonacci indicators which can
be found on the web, but they are all hard to understand and use. All
them only draws common Fibonacci levels. In addition, it is still very
unclear for many traders what Fibonacci retracement, r1, r2 and
other levels are. The main idea of this software is to take away the
decision making process associated with complex Fibonacci principles
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and allow you to make guided profitable trades. Our software will
print BUY SELL arrows, popup and email alerts – everything you need
to take advantage of Fibonacci system in automatic way! AFP is a
combination of multiple advanced indicators – ALL in one: Fibonacci
levels + laser accurate trend indicator + + trades commentator. This
software will give you the power of a professional trader and allow
you to magically trade based on Fibonacci levels without learning
complicated Fibo courses and books.
“Auto Fibonacci Phenomenon” is LIKE YOU HAVE A FRIEND –
PROFESSIONAL TRADER, who recommends to you when to trade
and how to trade! Isn’t this every trader’s dream?
The hit rate of the indicator is about 75-85% in most currencies, and higher in the
currency pairs recommended in the next chapters.
The main difference of this software is that the Auto Fibonacci Phenomenon will
NOT generate a lot of signals a day as any traditional Buy/Sell software. Fibo
trading works in a different way – it’s very safe entries.
We advise that you read and make sure you understand the entire system before
putting it into practice. Experiment and gain experience in demo accounts before
trading with your own money. If you find that you need further help or have any
questions, do not hesitate to contact our technical department.
What are Fibonacci Numbers and the Golden Ratio?
The Fibonacci sequence first appeared as the solution to a problem in the Liber
Abaci, a book written by Leonardo Fibonacci in 1202 to introduce the Hindu-
Arabic numerals used today to a Europe that was still using Roman numerals.
The original problem in the Liber Abaci posed the question: How many pairs of
rabbits can be generated from a single pair, if each month each mature pair
brings forth a new pair, which, from the second month, becomes productive.
The Golden Ratio
After the first few numbers in the Fibonacci sequence, the ratio of any number to
the next higher number is approximately .618, and the lower number is 1.618.
These two figures are the golden mean or the golden ratio.
Its proportions are pleasing to the human senses and it appears throughout
biology, art, music, and architecture. A few examples of natural shapes based on
the Golden Ratio include DNA molecules, sunflowers, snail shells, galaxies, and
Important Retracement Levels
The two Fibonacci percentage retracement levels considered the most important
in trading are 38.2% and 62.8%. Other important retracement percentages
include 75%, 50%, and 33%.
1. Fibonacci Defines Stop Loss Levels
A trader can use Fibonacci numbers to set stop loss orders.
For instance, if at least three Fibonacci price levels come together in a relatively
tight zone, a stop loss placement just below or above the zone may be set.
A Fibonacci number helps define stops in the following way, if a trader trades
against a support zone, if the support zone is violated and the price trades below
that zone, the reason for the trade is negated and the position should be closed.
Setting stops using Fibonacci retracements takes the emotion out of trading and
gives a pre defined exit point.
2. Fibonacci Defines Position Size
Depending on the risk you are prepared to take per trade, Fibonacci numbers can
also define position size. For instance, if prices are right on a specific level, you
may wish to have more positions than if the price is further away.
3. Fibonacci Defines Objectives
With Fibonacci numbers, once a pattern completes against a Fibonacci price zone
you can use them to set profit objectives to bank partial profits or tighten stop
loss levels. This clear objective for traders helps them to lock in profits. The great
advantage of Fibonacci numbers and the golden ratio is the fact that they take the
emotion out of trading and can define not only stop losses to exit a market, but
also set profit objectives as well.
