FOREX on Fibonacci levels
trading system on Fibonacci levels
Fibonacci (Fibo - levels) often ispolzuyutsya Most of traders in financial markets, including in the Forex market.
at Fibonacci levels built a lot of forex trading strategies.
One of the more common trading strategies forex, are based on that price, adjusting in relation to the previous trend, will be equal to the distance measured previous < em> motion multiplied by the factors 0.236 0.382 0.5 and 0.618.
I can only add that each currency pair has its own significant levels of rebound and steer, which can be used as signals for entry into the market . But still have exactly 0.382, 0.5 and 0.618 garazdo work more often than other levels. .. The signal "to the opening position" occurs when, after a long price movement adjusted to not less than 0.2-0.3 part of the last movement.
The strategy of trade on Fibonacci levels as follows:
Draw Fibo-levels , and set the order to buy or sell some of these levels, with about safety stop-loss above the following important Fibo-level.
if you want to take a position about level of 0.382, the stop-loss set slightly above the Fibonacci sequence - 0.5;
if the level of about 0.5, stop-loss set above the Fibo level of 0.618;
if you want to take a position about level of 0.618 - the stop-loss set slightly above the Fibonacci 0.75.
Consider the example shown in Figure:
After the fall of USDJPY currency pair from 107.15 to 105.20 draw Fibo-levels in the course of price movements. And, just draw a Fibo levels after falling from 106.70 to 105.20.
After the start of the corrective movement on this currency pair, set aside an order to sell approximately 0.382 Fibo level of corrective movement of a large drop. This Fibonacci level coincides almost exactly with the level of 50% fewer falls.
Ie Sell Limit order put on USDJPY at 105.95, Stop-Loss above 0.5 on a larger fall to 106.30 ...
C ene came to this level and bounced away, and then went up and the level of 0.382 was broken up. And the next level to stop or reverse the current trend is the realization of approximately 0.5 of a large fall, and also note that this level again almost coincided with a fall of 0.618 of a smaller one. But since We have put a stop loss at 106.30, then we are still in the open position. If you use the trade a trailing stop , then we had a chance to rearrange the order triggered to breakeven and wait for further development of the event, if the price has gone further, treylenguem position when it closes at the turn profitable stop-loss or with zero.
So, if you close the last position on the trailing, then put the following order Sell Limit USDJPY 106.15, and S / L (stop loss) to 106.50. At this time, the level of 50% of the corrective movement was an important level to move down and stand (in this case, the coincidence of 2 levels in one location had the strongest support for the bears - sellers).
If you have not used trailing stop at the opening of the 1st position, our stop loss at 106.30 anyway and we survived closed position at a profit.
In the future the situation developed so:
< / p>
Upper red line denotes the point of our entry into the market for sale. This was followed by nearly 2-day correction in the market, after which, according to the laws of the genre, the fall of the currency pair has been continued.
second arrow denotes the second entry into the market after the corrective movement, which ended just about the previous Low.
For pessimists saying that the history we can all teach anyone, claiming that all of the above happened in the real account ...