Technical Currency Analysis With Fibonacci

Fibonacci tools special relationships that occur naturally in nature to help predict the points of support or resistance. Fibonacci numbers are 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. The order is determined by adding the previous two numbers (ie 1 +1 = 2 produced, 2 +3 = 5) The primary relationship used in 0618, this is by a Fibonacci number in the next number in the Fibonacci sequence (55/89 = 0.618) scores. The logic used by traders Fibonacci base, such as the Fibonacci numbers are the creations of nature and nature in stocks, futures and foreign exchange markets - people. Therefore, the Fibonacci sequence to the financial markets will be applied. Fibonacci There are many tools used by traders, including fibonacci retracement, fibonacci Arcs, fibonacci fans,fibonacci time extensions.

Undoubtedly the most frequently used instrument is the Fibonacci retracement. To calculate the Fibonacci retracement levels, a significant decrease, and maximum is important. From there, the prices on the original dispute (low to high or too low) in a ratio of the Fibonacci sequence, typically 23.6%, 38.2%, 50%, 61 back, 8% and 76 , falling 4%.

The examples in this section, the S & P 500 Depository Receipts (SPY) according to the logic of the S & P 500 is a measure of human nature is to be used should also be applied to the Fibonacci sequence very well. However, the Fibonacci sequence on individual stocks, commodities and foreign exchange currency pairs are used quite regularly. The table above shows the decline of 38.2%, which acts as a support to prices.

Note that a trend line is a significant decline (of trend) lead to a significantly high (end of the trend), trading software calculates the retracement levels.

Note down in the S & P 500, the price retracement level of 23.6% was recovered and then rotated quickly. Later, after the break of the resistance a few months, the decline was from 23.6% to support. Price to the level of 50% retracement, when met with resistance. Price remains between retracement level of 38.2% (which serves as a carrier) and the level of 50% retracement (which acts as resistance) vary.

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