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What's Fibonacci Forex Trading?
from: Adrian PabloFibonacci 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 form 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.
Free chapters of a forex day trading system can be downloaded at
the author's website in case you are interested in learning more
about Fibonacci forex trading.
About the author:
Adrian Pablo; Forex trader
and freelance writer.
http://www.1-forex.com
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