Fibonacci Forex Trading

[adpablo]

Fibonacci forex trading is the basis of many forex trading systems used by a great number of professional forex brokers around the globe, and many billions of dollars are profitable traded every year based on these trading techniques.

Fibonacci was an Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it’s formed by a series of numbers where each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.

These ratios are mathematical proportions prevalent in many places and structures in nature, as well as in many man made creations.

Forex trading can greatly benefit from this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.

Fibonacci price points, or levels, for any forex currency pair can be calculated in advance so that the trader will know when to enter or exit the market if the prediction given by the Fibonacci forex day trading system he uses fulfills its predictions.

Many people tries to make this analysis overly complicated scaring away many new forex traders that are just beginning to understand how the forex market works and how to make a profit in it. But this is not how it has to be. I can’t say it’s a simple concept but it is quite understandable for any trader once he or she has grasped the basics and has had some practice trading using Fibonacci levels along with other secondary indicators that will help to improve the accuracy of the entry and exit point for every particular trade.

You can get a free report on Fibonacci Trading at the site below...

[dancarfx]

I’d like to use this indicator but it seems that if I want to, I must to support my decision taking another indicator. Adding supports and resistances is not that hard but is true it is not a good idea taking decisions just with those lines. If any of you guys have an idea about another indicator, please let me know! Thanks. Dan

[Reealjrd]

Hi,
Fibonacci forex trading is the basis of many successful forex trading systems that are used by a great number of professional forex traders around the world. Trading systems based on this -numbers sequence- are so successful that billions of dollars are earned every year by traders following its rules.

Forex traders can greatly benefit from this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, are known to follow Fibonacci ratios very closely as indicators of resistance and support levels; maybe not to the last cent, but so close as to be really amazing.

Fibonacci! it is no doubt a nice system for trading. s you have said that most of the traders are using and most of them have maid billions of dollars through this trading system. Traders making billions of dollars through this system must be experienced traders having knowledge about this market know how to trade this market.

I trade this market with my own trading strategy and make profit targets for the day. I have fixed my profit target of 20-30% monthly of my invested money.

The trading system which you have described is really very nice.

[dancarfx]

I got some experience on Fibonacci and most of the time it works. Are like special lines where pairs try to fix themselves. I’m still looking for an extra indicator supporting this one. Dan

[dollarfinder]

I think Fibonacci is just straight numbers. In other words its going to happen because the numbers show that it will happen.

Elliot wave involves a little rationality. But I do believe Elliot said that he had no idea that his concept was the same as Fibonacci. So with that being said. I do believe they are like one in the same with a few minor differences.

[Reealjrd]

Fibonacci is common trading software which most of the people use to know about the market analysis. Which can be connected with Elliot wave system.

[Antne22]

Are Fib levels a self fulfilling prophecy? Do investors see prices reaching one of these levels and take action, thereby CAUSING the market to react? I read somewhere that investors are only accountable for a certain percent of the market action where economic data picks up the rest. Isn't it something like investors 80%, economy 20%? None of these questions are rhetorical by the way. lol. Thanks

[michael.new]

If you want to know more about , follow Mr. Daniel Bruno he is awesome market technician

[finvik]

Fibonacci numbers are the result of work by Leonardo Fibonacci in the early 1200's while studying the Great Pyramid of Gizeh. The Fibonacci series is a numerical sequence comprised of adding the previous numbers together, i.e.,
(1,2,3,5,8,13,21,34,55,89,144,233 etc..) An interesting property of these numbers is that as the series proceeds, any given number is 1.618 times the preceding number and 0.618% of the next number.(34/55 = 55/89 = 144/233 =0.618) (55/34 =89/55 =233/144 =1.618), and 1.618 =1/0.618.This properties of the Fibonacci series occur throughout nature, science and math and is the number 0.618 is often referred to as the "golden ratio" as it is the root of the following polynomial x^2+x-1=0 which can be rearranged to x= 1/(1+x).So that's were the fib # 0.618 comes from. The other fibs 0.382 and 0.5 commonly used in technical analysis have a less impressive background but are just as powerful in Technical analysis.0.382=(1-.618)=(0.618*0.618)and 0.5 is the mean of the two numbers.Other neat fib facts (0.618*(1+0.618)=1 and (0.382*(1+.618))=0.618.Use of Fibonacci #'s in Technical Analysis Fibonacci numbers are commonly used in Technical Analysis with or without a knowledge of Elliot wave analysis to determine potential support, resistance, and price objectives. 38.2% retracements usually imply that the prior trend will continue, 61.8% retracements imply a new trend is establishing itself. A 50% retracement implies indecision. 38.2% retracements are considered nautral retracements in a healthy trend.
ABC's
Price objectives for a natural retracement (38.2%) can be determined by adding (or subtracting in a downtrend) the magnitude of the previous trend to the 38.2% retracement. After the 38.2% retracement the stock should break through the previous swing point(B) on heavier volume. If the volume isn't there the magnitude of the move will usually be diminished, especially on very low volume.




61.8% retracements are warning signs of a potential trend changes.

[forexboy]

Fibonacci tool is a very complicated tool. Anyone where can I get some basic explanation of it?