Fibonacci Range Expansion Trading Zone

Our guest today is Tom Strignano, a former Chief Bank Dealer with 25 years experience. He has also been featured on The Forex Signals. Follow Tom as he shows you a technique he developed back in the 1990's incorporating Adam's favorite Italian mathematician, Leonardo Fibonacci.


The Fibonacci Range Expansion Trading technique is one that I developed back in the early 1990s when I was moving away from lagging indicators like RSI, MACD, moving averages etc. I had no success using those indicators and came to the conclusion that either I didn't understand them, or that they simply didn't work. The only thing that I had any success with was trendline breaks, Fibonacci points, and standard pivots with the reading of pure price action. I was taught that in order to be successful in this business of trading, you need a few components.

According to my mentor and senior treasurer, Aldo Pizzoferrato, trading required BMG, or Brains, Money, and Guts. You need the brains to anticipate market momentum and to be a step ahead of the herd. You need capital to advance, and finally, you need the guts to believe in yourself and your systems. Therein lies the problem for most traders. Most traders operate on the simplest level. They have no real trading plan and view charts and price action using gut feel or really just guesswork. Aldo stressed upon me that the most effective approach was acting like a quarterback of a football team. I need to send the signals, by reading the market and finding weakness in the markets’ defenses. He would always say, “Don't just receive the signals, send the market some feedback.” I had learned that trading is not a spectator sport. In other words, the most effective approach is in the development of systems that generate buy and sell signals. I had to move from "chart artist" to a true technician. Continue reading "Fibonacci Range Expansion Trading Zone"