The video below explains how to make money forex trading using fibonacci ratio's.
Forex Video Highlights
Finonacci Retracements and Profit Targets
Finonacci retracements show you low risk places to buy in the direction of the trend.
The 1.618 is a Fibonacci profit target to exit your trend trades at and consider counter trend IF there are other factors such as other support/resistance there and how far overextended the trend is.
Time frames to use Fibonacci are irrelevent in the author's opinion. A swing as defined as a movement up or down can be seen on 1 min chart, 5 min, 60 min, etc. What you should do in using Fibonacci is make SURE that the swing is at least 20 to 30 pips. Fibs don't work well at all on small 10-15 pip moves.
Fib ratio's work for countertrend traders.
Important forex fibonacci retracement levels: 0.618, 0.50 and 0.382
