Fibonacci retracements are a valuable way to time your entry into a position. The industry standards are at 23.6%, 38.2%, 50.0%, 62.8%, and 78.6%. This might seem like a difficult thing to determine but your charting package will be able to do all of the work for you, so don’t worry about the math. These levels are determined by overlaying lines on a candlestick chart. When the price of the currency begins to move back away from the retracement line and toward the overall trend, you will know that it’s time to open up a position.

These work as predictors because the movement in a currency’s price will oftentimes follow universal trends. Over the centuries that people have been charting prices, these movements tend to appear more often than not. Therefore, whether it might be a natural occurrence, or one based upon market psychosomatics, using Fibonacci retracements is a reliable way to make money, regardless of what market you are in.

The most important thing to remember is that these things sometimes take time, especially when using Toms EA. Having a good deal of patience is key to a successful trading career. Make sure that you wait long enough for proper retracements to develop. Sometimes these occurrences will lag behind in their development. At the same time, however, don’t be afraid to cut a trade short if the price reaches a level that you cannot tolerate. It is better to lose a little and make a little than it is to lose a lot and make the same amount.