Forex For Beginners - Forex Fibonacci Explained

Trading Bonus Free 25€ / No Deposit Required : https://goo.gl/nXSPZ7 Fibonacci Retracement - MT4 Indicators MQ4 & EX4 Download:https://goo.gl/2wsKZY Free Tools Here: https://goo.gl/ Forex For Beginners - Forex Fibonacci Explained Fibonacci Trading is a huge and popular strategy amongst Forex traders and a basic understanding of this strategy is crucial if you want to succeed in the Forex market. This strategy is named after the genius mathematician Leonard Fibonacci who invented a number sequence (1,1,2,3,5,8,13 etc). The interesting thing about the sequence is that the ratio of every number to the next number is 0.618. The ratio of every alternate number is 0.382 and so on. The point is: The ratios are ALL the same. That's why these ratios are called the 'Golden Mean'. When these numbers are plotted between a Swing High and a Swing Low (on an uptrend or a downtrend), gives the most probable support and resistance levels a trend might take. The results that show up on the chart after plotting this ratio is called a 'trace'. Before the Fibonacci system is applied you need to know what a Swing high and a Swing low is. A Swing High is the highest point on the graph in the time-frame that you are interested in. A Swing Low is the lowest point on the graph in the time-frame that you are interested in. Once you know where these points are, you can plot the Fibonacci traces on them. There are 2 types of Fibonacci traces: Fibonacci Retracements and Fibonacci Profit Targets. Fibonacci Retracements show you the lowest places to buy in the direction of the up-trend on a short term fallback. Fibonacci Profit Targets are where the market will usually move, as the trend continues and then stall or reverse. Basically, Fibonacci Retracements are mini support levels and Fibonacci Profit Targets are mini resistance levels. The Fibonacci Retracements are charted using an Swing High and a Swing Low. Just choose an Swing High and a Swing Low and the charting software will do all the work for you. The chart will now show Fibonacci levels (like mini support levels). For new traders, I recommend the directional move has to be 25-30 pips or more and buy (if it is an uptrend) on the 50% or the 61.8% level. The Fibonacci Profit Targets are actually an extension of the Fibonacci Retracements and they are usually located right above the Retracement levels. These levels can treated as mini resistance levels and traders usually pull out of a trade at these levels. Usually, in the 15 minutes chart the trend will stall at the 1.362 level unless the trend is really strong (which is indicated by oscillators). The Fibonacci trading system when combined with other indicators and oscillators are correct 50-60% of the time. Usually when 10-15 pips are risked on a Fibonacci trade, 40-50 pips can be returned and traders usually leverage this effect to make a ton of money.

Comments

1. Great tutorial! I still need A LOT of training ugh! Practice, practice like you said. Thank you.