If you'd like to know why Fibonacci trading in the Currency market is so well-liked then you have to understand the basics of the Fibonacci methodology. This is going to help you to be successful in the Currency Market.
Leonard Fibonacci was a mathematician and invented the sequence of following numbers: 0, 1,1,2,3,5,8,13,21 and so on. It is interesting to notice that the ratio of any number in the sequence to the following number equals 0.618. And if you work out the ration of each alternate, then you'll find it to be 0.382. He called this proportion the Golden Mean, because these are all the same. You will find Fibonacci sequence also in the nature.
You can apply this Fibonacci system in Swing trading. First you've got to understand what Swing low and Swing high is. The bottom on the graph in the time frame is named Swing and the uppermost point in the time frame is called the Swing high.
Fibonacci traces are composed of 2 types, namely the Fibonacci Profit Target and Fibonacci Retracement. Fibonacci Profit Target is the point at which the market moves when the trend continues and then reverses or stalls to a stop. Fibonacci Retracement will usually identify the lowest places where you can buy toward the up-ward trend. Fibonacci Profit Targets are resistance levels and the Fibonacci Retracements are support levels on a micro level.
Fibonacci trading is a very popular technical analysis technique. To assist the trader, there are several Fibonacci trading software now available. By utilizing trading software the trader can see all of the Currency market conditions. The use of Fibonacci trading software is popular and the popularity is increasing. Only some of these trading software packages is counseled by successful and pro Fibonacci traders. This is due to the proven fact that just a couple of trading software have been proved successful. Another recommended package is the Gann trading software.
Leonard Fibonacci was a mathematician and invented the sequence of following numbers: 0, 1,1,2,3,5,8,13,21 and so on. It is interesting to notice that the ratio of any number in the sequence to the following number equals 0.618. And if you work out the ration of each alternate, then you'll find it to be 0.382. He called this proportion the Golden Mean, because these are all the same. You will find Fibonacci sequence also in the nature.
You can apply this Fibonacci system in Swing trading. First you've got to understand what Swing low and Swing high is. The bottom on the graph in the time frame is named Swing and the uppermost point in the time frame is called the Swing high.
Fibonacci traces are composed of 2 types, namely the Fibonacci Profit Target and Fibonacci Retracement. Fibonacci Profit Target is the point at which the market moves when the trend continues and then reverses or stalls to a stop. Fibonacci Retracement will usually identify the lowest places where you can buy toward the up-ward trend. Fibonacci Profit Targets are resistance levels and the Fibonacci Retracements are support levels on a micro level.
Fibonacci trading is a very popular technical analysis technique. To assist the trader, there are several Fibonacci trading software now available. By utilizing trading software the trader can see all of the Currency market conditions. The use of Fibonacci trading software is popular and the popularity is increasing. Only some of these trading software packages is counseled by successful and pro Fibonacci traders. This is due to the proven fact that just a couple of trading software have been proved successful. Another recommended package is the Gann trading software.
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