Quite a lot of people today prefer Fibonacci trading. People try to analyze the market and thus greatly complicate our own analysis. But the interesting thing is that many who do understand all the features of the foreign exchange market and know how to get a profit on it. But I think that it should not be and I do not think that trading Fibonacci - an easy task. Not at all. But I think that if you want any trader can understand all the twists and turns that are invoked using the technique of trading on Fibonacci. If you sharpen your skills of market analysis through the use of Fibo levels, together with other secondary indicators that will enable to increase the likelihood that more accurately you enter the market and get out of it at the most opportune moment.
In general, the Fibonacci theory was originally used in the futures market as long as the software packages are not transferred to the stock market. The popularity of this method of analysis of the market has increased significantly because traders began to experiment with the mathematical part, and found that Fibonacci Trading provides a good return.
One of the interesting techniques based on Fibonacci Forex Fibonacci ratios are. These relationships represent the interaction that occurs between trendy and antitrendovymi movements in 28, 50 and 62%. These points form the initial corrective retracement levels. They try to apply Fibonacci ratios to counter trend market, in order to predict fluctuations in the price range limit. Spend a little graphical analysis. To do this, put on a schedule for interest rates to the most obvious of the wave. As a result, you will understand where and how they will meet the interest Fibonacci levels with the most important price levels.
If you placed retracement levels will coincide with graphical models, it will be a call to action, since such a situation is interpreted as a fairly promising in terms of trading opportunities. But on their own levels of restoration work is very bad. So try to use supporting elements, such as moving averages. With their help, you will be able to confirm certain key levels, or vice versa.
It is also worth noting that the use of Fibonacci Forex, try in the decision to get the most complete picture. The fact that the levels of recovery will only work if they do not coincide with graphical models. Otherwise, we get only noise. So if you see that you can not get the big picture, then leave this chart, because the differences will lead to a large number of sharp turns on the price chart. Conversely, a strong correlation, which will be observed between the fib levels and chart patterns, give a strong signal to turn on at certain levels.
Today there are many trading techniques Forex Fibonacci. I will look at the most practical ways to trade based on Fibonacci levels. I think that even if you're not going to use these techniques in your trading, then at least on the basis of their will to create something different, something that will really work.
So, let's begin.
1. Continuation of the gap
- In Fig. 1 Continuation of the gap
Quite often, we can determine the exact price, where the ends off, or falling prices, due to the use of Fibonacci extension at Gap. Actually, the chart to identify the GEO is easy. This is mostly seen with the naked eye. Once you identify GEO grid start to build a Fibonacci sequence. Construction should be as shown in Figure 1. That is, the gap must be under 50% level. The grid must begin to build at the beginning of a trend. The ends of the grid will show where it will end rise or fall.
- The second maximum and minimum
- In Fig. 2 The second maximum and minimum
One of the problems in the use of Fibonacci grid - is to find the point from which this grid will begin. Sometimes it really turns into a serious problem. I have recommendations for where best to start her place. In most time frames, there are points of absolute peaks and the absolute minimum. So, as it may seem, but these points do not always have to serve as the start of the grid. Best of all - is to find a small double bottom or top in the most crowded places, preferably at the bottom of the trend. After that, place one end of the fibo grid at the second minimum or maximum. You should post it instead of the first. This manipulation will allow you to capture a single wave of Elliott. The main thing - that this wave is consistent with the trend, in which you trade or intend to do it.
3. Night trick - In Fig. 3 Night trick
To begin select the most active stock. It is desirable that this was a cross-rate. Go, and the standard currency pairs, but they are less effective for this technique. Once decide the currency pair, select the minimum and maximum levels achieved in the last hour of trading session. Then you need to build a grid in the opposite direction so that it ended on the points of maximum or minimum one hour the next day. This technique allows you to set the price of the wave. These waves can be used for receiving signals a reversal in prices within a day. This trading method is also effective when trading in the morning, Gap, because in most cases, the GEO will affect the level of key recovery. This will allow to enter the market without being at high risk of reaction.
