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Apr 3
3.6 Learn Fibonacci

Anyway whether the forex trading markets really observe the “natural law”, or it is simply the bring about many forex trading programs acting in agreement, forex trading markets tend to respond to a specific set of ratios. In order to understand these ratios, we will first cover where they are derived.
In the late 12th century lived a man named Leonardo Fibonacci de Pisa. it is known that when he returned from his stay in Egypt for some, he come across a set of numbers with may tremendous values. Obviously it was his study of the Pyramid of Gizeh where he found the “Golden Ratio” that the ancient Egyptians had combined into its properties. Today we relate to this cycle of numbers as “Fibonacci Numbers”
The sequence of these numbers are as following: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377. It can be seen that each number is added by the previous two numbers in the series. This can go on till infinity.
The remarkable behavior of these numerals are that after getting former the first 4 digits are as follows. Each numeral in the series is around 1.618 the prior number. The greater the number, the nearer to this ratio it will be. On the opposite, every numeral is around 618 of the next higher numeral. The higher the number, the nearer to this ratio it will be. Every second numeral will be 2.618 of every other, such as 377 to 144. The reverse is .382.
These ratios also interrelate to each other as follows:
These ratios also interconnect to each other as follow:
Square of .618 = .382.
Square of 1.618 = 2.618
2.618 x .382 = 1
2.618 - 1.618 = 1
1.618 x .618 = 1
1.618 - .618 = 1
There are much more exciting data that we can raise about the Fibonacci numerals and ratios, but we will provide it now and talk over the application of Fibonacci to market examination and forex trading.
Fibonacci ratios frequently not clear in the form of forex trading market prices. By analyzing any forex trading price diagram, you can notice this for yourself. The easy method to practice Fibonacci is a price support/resistance finding. As discovered in many forex trading plans today, what is called Fibonacci Retracements come from by taking a forex trading market range, like a forex trading market lower to a higher and dividing that range by these Fibonacci ratios 382, 618. There are also other Fibonacci ratios you can practice like 786 and 236. 786 is the square root of 618, and 236 is from multiplying 382 with 618. For example, assume that we look at our daily forex trading price chart and see a clear forex trading market lower at 150. Now assume that forex trading price shifted up for few days and finally made a higher at 200. WE know this to be a higher as forex trading price has begin to shift down from that high. In that case we should do to get our Fibonacci static support/resistance forex trading prices is to get the high forex trading price at 200 and minus from that lower forex trading price at 150. The reach would than be 50 points.
Take the RANGE (50 points) and multiply it by the Fibonacci ratios of 236, .382, .618 and .786. The end results of forex trading would than be as following:
(50 x .236) = 11.8
(50 x .382) = 19.1
(50 x .618) = 30.9
(50 x .786) = 39.3
As forex trading price is shifting down from the forex trading high price of 200, we would minus the results of these ratios from 200 to obtain our forex trading SUPPORT prices.
(200 - 11.8) = 188.20
(200 - 19.1) = 180.90
(200 - 30.9) = 169.10
(200 - 39.3) = 160.70
The procedure is similar for forex trading price reaches that go from high to low, where forex trading price is beginning to shift up again. In those circumstances you would easily add the outcome of those ratios to the forex trading low value to get your RESISTANCE prices.
Fibonacci ratios can also be beneficial at occasions or finding when a high or forex trading low may develop. The procedure is to just count the number of days between two highs or lows and multiply by 618. take the outcome and add to the second high or low in your equation to predict out probable turn. One more time the method is to take any main high or low and then count forward a Fibonacci number of days into future, like 34, 55, 89 days and whatever.
Whatsoever besides in forex trading, value will not alt the time find Fibonacci support/resistance not will it at all times turn at your Fibonacci time day calculations. Other ways and signals have to be employed together with, Fibonacci ratios labor in forex trading market examination. On the other hand, because the occurrence of the ratios affecting forex trading market act, it would be worth your time to increase your study in Fibonacci number and ratios.

Anyway whether the forex trading markets really observe the “natural law”, or it is simply the bring about many forex trading programs acting in agreement, forex trading markets tend to respond to a specific set of ratios. In order to understand these ratios, we will first cover where they are derived.

In the late 12th century lived a man named Leonardo Fibonacci de Pisa. it is known that when he returned from his stay in Egypt for some, he come across a set of numbers with may tremendous values. Obviously it was his study of the Pyramid of Gizeh where he found the “Golden Ratio” that the ancient Egyptians had combined into its properties. Today we relate to this cycle of numbers as “Fibonacci Numbers”

The sequence of these numbers are as following: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377. It can be seen that each number is added by the previous two numbers in the series. This can go on till infinity.

The remarkable behavior of these numerals are that after getting former the first 4 digits are as follows. Each numeral in the series is around 1.618 the prior number. The greater the number, the nearer to this ratio it will be. On the opposite, every numeral is around 618 of the next higher numeral. The higher the number, the nearer to this ratio it will be. Every second numeral will be 2.618 of every other, such as 377 to 144. The reverse is .382.

These ratios also interrelate to each other as follows:

These ratios also interconnect to each other as follow:

Square of .618 = .382.

Square of 1.618 = 2.618

2.618 x .382 = 1

2.618 - 1.618 = 1

1.618 x .618 = 1

1.618 - .618 = 1

There are much more exciting data that we can raise about the Fibonacci numerals and ratios, but we will provide it now and talk over the application of Fibonacci to market examination and forex trading.

Fibonacci ratios frequently not clear in the form of forex trading market prices. By analyzing any forex trading price diagram, you can notice this for yourself. The easy method to practice Fibonacci is a price support/resistance finding. As discovered in many forex trading plans today, what is called Fibonacci Retracements come from by taking a forex trading market range, like a forex trading market lower to a higher and dividing that range by these Fibonacci ratios 382, 618. There are also other Fibonacci ratios you can practice like 786 and 236. 786 is the square root of 618, and 236 is from multiplying 382 with 618. For example, assume that we look at our daily forex trading price chart and see a clear forex trading market lower at 150. Now assume that forex trading price shifted up for few days and finally made a higher at 200. WE know this to be a higher as forex trading price has begin to shift down from that high. In that case we should do to get our Fibonacci static support/resistance forex trading prices is to get the high forex trading price at 200 and minus from that lower forex trading price at 150. The reach would than be 50 points.

Take the RANGE (50 points) and multiply it by the Fibonacci ratios of 236, .382, .618 and .786. The end results of forex trading would than be as following:

 

(50 x .236) = 11.8

(50 x .382) = 19.1

(50 x .618) = 30.9

(50 x .786) = 39.3

As forex trading price is shifting down from the forex trading high price of 200, we would minus the results of these ratios from 200 to obtain our forex trading SUPPORT prices.

 

(200 - 11.8) = 188.20

(200 - 19.1) = 180.90

(200 - 30.9) = 169.10

(200 - 39.3) = 160.70

 

The procedure is similar for forex trading price reaches that go from high to low, where forex trading price is beginning to shift up again. In those circumstances you would easily add the outcome of those ratios to the forex trading low value to get your RESISTANCE prices.

Fibonacci ratios can also be beneficial at occasions or finding when a high or forex trading low may develop. The procedure is to just count the number of days between two highs or lows and multiply by 618. take the outcome and add to the second high or low in your equation to predict out probable turn. One more time the method is to take any main high or low and then count forward a Fibonacci number of days into future, like 34, 55, 89 days and whatever.

Whatsoever besides in forex trading, value will not alt the time find Fibonacci support/resistance not will it at all times turn at your Fibonacci time day calculations. Other ways and signals have to be employed together with, Fibonacci ratios labor in forex trading market examination. On the other hand, because the occurrence of the ratios affecting forex trading market act, it would be worth your time to increase your study in Fibonacci number and ratios.

 


Technical Indicators

 

3.1 Ellit Wave Analysis

3.2 Learn Fibonacci Studies

3.3 Stochastic

3.4 Moving Averages

3.5 Bollinger Bands

3.6 Learn Fibonac

 


Forex Education

 

The Basics of Currency Forex Trading

Technical Analysis

Technical Indicators

Fundamental Analysis

Intraday Trading

Emotional & Behavioral Part

Risk & Money Management

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