Fibo method

[sinpix]

Hi everyone,
my question may be silly, but i'm quite new to forex. I'am testing now TRO dynamic fibs SR. do i understand it right? please comment:

red or blue dots shows support and resistance. grey and white are fibonacci levels, right? So, when price reach resistance, should turn it's direction. but not always, so i wait, and when price finally gets to first fibo level, this is confirmation for me that i can open position. Am i right so far? if i'm right, then please tell me should i wait till candel hits fibo level, or till another candel opens above fibo level? when is the time for me to close position?

PS. TRO! thanks for your time you give to us, you're the MAN!

[sinpix]

It seems that i don't understand what in fact shows fibonacci levels... can you point me to any learning resource?

[koolbreeze]

Sinpix,

The red and blue lines mark the high and low range that the underlying fib numbers are based on. The fib retracement ratios are the lines within the red and blue lines. I think you are oversimplifying the nature of how Fibonacci can benefit a trader. There is no real should in price action. It goes where it goes. Fibonacci levels give you a place where you may see the battle flare up. Google fibonacci for more info, a bunch is written about it. Also if you are interested, a good book is FIBONACCI FOR THE ACTIVE TRADER by Derrik S. Hobbbs.

Good luck.

[sinpix]

thanks Koolbreeze, i get back to google