How to master fibonacci retracements?

Hello Traders

Did any one noticed that whenever there is a sudden drop in a pair ... there must be a sudden rise after ... Iam just wondering so at the chart below does that mean ( according to fibonacci ) to buy @ 61.8 and 50.0 and 38.2 ....... if yes where should i place SL/TP .... if not - what does it mean ...

http://upload.wikimedia.org/wikipedi...etracement.png

another thing ... please if anyone have a good strategy using fibonacci please share so we can develope a great one all together ...

Thanks in advance
Cheers

why would fibonacci work?

[1+sqrt(5)]/2 why would this be relevant in the markets?

If trading Fibonacci RETRACEMENTs, you trade the retracements.
In your chart, you show a strong down move. The idea is that when the price retraces to a Fibonacci level after a strong down move, you would enter short, not long.
I know that a lot of people swear by Fibonacci and many more will swear at it
Many traders have a lot of faith in Fibonacci and Daily pivot levels because they see price react to them so often.
In reality, they are just mathmatically calculated levels that have nothing to do with proper S/R levels.
Try putting a few random lines on your chart and you will see that price reacts to these random lines as much as they do to Fibonacci and pivots.
Better still, put some lines on your charts where there has been real S/R and congestion and you will see price react at these levels.
When you see price reach a S/R level, then you can use your knowledge of candle patterns, PA or your favoured indicator to decide whether to enter a trade or not.

Hi forexmnstr, I think your USDCAD chart is in bearish trend and you should find a sell position not a buy position

Thank you ... your absolutely right