FOREX on Fibonacci levels
five basic ways to trade on the Fibonacci levels.
Fibonacci are able to describe the relationship between trend movements and against the trendy - Recovery of 38.2%, 50% and 61.8% form the primary levels of corrective movement. Use these relations after a trend in either direction, so that you can predict the degree of fluctuations against the trend. Causing the grid Fibonacci levels to the most pronounced wave up or down, you can see how interest rates intersect with the key Fibonacci price levels of trading.
Match the graph graphic models and the Fibonacci retracement levels can point you to excellent trading signals . You should always analyze the highs, lows and moving averages are the same for final confirmation of the importance of certain Fibonacci level.
differences between trading Fibonacci retracements and basic graphics model of the forex market leads to noise ratio (correct) instead of profit. You should not trade on the schedule, if his analysis of the contradictions arise. These differences in the analysis ultimately leads to a large number of turns on price charts. Conversely, a strong correlation between trading Fibonacci levels and chart patterns forex provides you with a very predictable turns on a fairly narrow price levels.
Offered 5 ways to consider , allowing you to help when dealing with trade Fibonacci levels . Add these 5 ways to your arsenal of technical instrumentation and try to apply it always in his subsequent analysis of the trade in the forex market (CFD, Futures). I'm sure they will serve you well for many years, and earn and save more than one thousand dollorov.
first rise / first failure
first rise / first failure - this is the first 100% retracement of the previous trend within your time frame. It warns of a turn after a new high or low . 100% retracement Fibonacci violating the basic direction of price movement and completes the current trend, which is consolidation. From this Fibonacci level, the previous trend can be restored, if in doing so he breaks through the old 38% Fibonacci level. Davolno often, Forex traders will use this level to open a trading position with a small acceptable risk against the trend of the past.
hunt for a parabola
parabolic move in the forex market can take place between 0% - 38.2% and 61.8% - 100% trading Fibonacci levels in all the trends in the market. This pattern provides an excellent opportunity to find the large trends when searching for trade transactions. Always make sure the clusters on the price chart, which are formed on the Fibonacci retracement levels of 38.2% or 61.8%. Then use a simple breakout system, once the price comes out of this area of ??the cluster. The next burst can be quite dramatic, once the price starts to move a magnet back to the previous maximum or minimum. Of course, this forex strategy only works if suddenly you can define these levels in advance.
you often can find exact price at which the rally is over or fall , using the continuation gap as a tool Fibonacci extension . Define GEO method of its placement in the dead center of the vertical wavelength for the price. Then start drawing Fibonacci grid at the beginning of the current trend and continue it so that the gap was at a 50% Fibonacci retracement level. Continued Fibonacci grid will show us the final price to rally or fall.
Click fairly active stock and start to draw Fibonacci grid with a maximum (or minimum) marked the last trading hour of the session. Then build a grid of Fibonacci in the opposite direction to a minimum (or maximum) of the first trading hour the next morning. This gives a price wave, a trader of the forex market tends to be used to determine intra-day reversals and intraday breakouts. "Night grid" also offers a trading strategy at this morning's Gap (at break sessions). GEO will often pass through the key Fibonacci retracement level and provide an opportunity enter a trading position in the market with little risk to rollback .
second maximum / minimum
Many Forex traders can not decide where to draw the Fibonacci grid. Here I offer you the following method, which will help you draw it in a more suitable location. The absolute maximum (maximum price) or at least wave at a price chart is not always the best point to draw a Fibonacci grid in most of the time intervals. Instead, I suggest you find a small " double bottom " or "double top" within the cluster , which started the current trend. Place one end of the Fibonacci grid on this 2nd peak (or 2nd at least), instead of 1. This allows you to select a specific wave Elliott , corresponding to this trend, in which you are trying to sell.