How to Combine Elliot Wave and Fibonacci Principle to Make Money in Forex Trading

I want to share with you what a friend shared with me. He said: I've talked in the past about the Elliot wave, the Fibonacci; I have named them the vehicle and the navigator. Well, now I am going to talk about the combination of the two of them together.

But before I tell you that, I want to tell you about how this came up. I am a Forex trader that has gone through school of hard knocks. I am a survivor; I certainly wouldn't want anybody else go through all of the troubles, the problems and the losses that I had to go through, learning how to trade.

I was very naïve when I started trading, I believed whatever I was told out by brokers, by companies that were doing multi level networking trading and so on and so forth, and there were a lot of good things I got from those things, but by and large, it was not the way to learn how to trade.

I wish I had someone I could have worked with from the beginning, who already knew how to trade, who already knew the pitfalls, who understood what true expectations were, understanding in that trading environment.

Although, I had to go thru a great deal of challenge, of difficulty, losses, sometimes great losses, as I attempted to learn how to be a live trader. All of those experiences became tools for me.

They became my teachers, they taught me how to coach, how to teach someone what to avoid. And in process of learning, especially, once I found my own mentors and coaches, they taught me what they knew already, I eventually got to a point, where I learned how to develop my own trade tools and strategies.

You've heard, when the student is finally ready, they appear what I appeared. But you've also learned how if that student survived, the teacher will run them through. That student one day becomes the teacher.

And that's what happened to me. I finally began to take this piece and that piece and other piece what I had learned from other mentors, other traders, and I began to see relationship between them, that they had not been teaching.

I came up with a strategy one day; I got to tell you, this strategy came up because of the coach that I was teaching—I was teaching Elliot wave, I was teaching Fibonacci, and all other strategy, and he wasn’t satisfied, he was frustrated with me, he said, ‘Steve, I am a computer programmer for Heaven's sake, I like to know I get this result, when I do this thing, and no matter how hard I tried to convince him, that's not how this market works.

You are not going to get 100% every time, you have got to take some losses sometimes, and it's just the way the market is, accept it. But he was still frustrated.

And I remember after he left our coaching session that day, I was a little bit frustrated myself, how am I going to satisfy this coach. Is there a way to do it? And I remember without going in to some of the other details, I remember asking, isn't there some way to view the market, to see in the market place, the most high probability scenarios that exist in the market.

If I can just learn how to identify and see them, then I can satisfy this coach. And I turned around and looked at my computer with that perspective in mind, and it all of a sudden just right in front of me.

I could see it all over my charts, 1, 2, 3, 4, there's another one, there another one—those are the highest probability moves that happen to be in the market place and they happen every day.

If I could be there when those were happening, and capture that moment, I've got 95% chance of success on that particular segment of the market. I put together a little strategy at test, and I tested that probably a day or 2 after that, trading the GBP/USD.

I started trading in the late evening, I traded 12 trades over the next 48 hours, sorry, a day and a half, and 11 out of the 12 trades were successful.

That account doubled in 36 hours, and I was amazed at how accurate that perspective was. The moment I looked at the charts, from that particular perspective to identify, I saw on the screen as the highest probability trade scenario, most likely to be successful. I saw it. And then I began to incorporate it in to my trade strategy.

Quote of the Day: "What you do for other people without payment is the rent you pay for the little space you occupy on earth."—Sam Awa