By Ed Ponsi, a globally recognized lecturer and teacher and the former chief trading instructor for Forex Capital Markets*

In a previous article (Fibonacci: Debunking the Debunkers - June 1, 2007), I discussed the results of a recent academic study of Fibonacci retracements and their use in various trading markets. Today, I'd like to present some tips on the effective use of this trading tool in the Forex market.

First, you might remember that we took a look at the AUD / JPY (Australian Dollar/Japanese Yen). We saw a nice bounce off the 38.2% level, coinciding with a reversal candle. The pair traded at an exchange rate of approximately 90.60, meaning that one Australian Dollar was worth approximately 90.6 Japanese Yen at the time.

By Mike Parnos, Educator, Trader and Hedge Fund Manager*
Posted: July 4, 2008

God gave us opposable thumbs, and they come in handy, especially when it comes to using our computer mouse (and, of course, eating). Modern technology has given us the ability to maneuver our way around a brokerage site to do our trading.

These days, most of us do our trading online. We do the research. Check out the option chain; get the option symbol; type it into the online order page. We click "send", and our precious order disappears into the wild blue yonder, only to appear on a market maker's board somewhere. Face it. It's magic, but it works.