What's Fibonacci Forex Trading?

What's Fibonacci Forex Trading?

Fibonacci forex trading is the basis of many forex trading systems used by a number of professional forex brokers around the world, and many billions of dollars are profitable traded every year based on these trading techniques.

Fibonacci was the Italian mathematician and he is best remembered by his world famous Fibonacci sequence, the definition of this sequence is that it is formed by a series of numbers where each number is the sum of the previous two numbers, 1, 1, 2, 3, 5, 8, 13 ... But in the case of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, ie .236, .50, .382, .618, etc.

These indicators are mathematical proportions prevalent in many places and structures in nature, as in many human creations.

Forex trading can greatly benefit form this mathematical proportions due to the fact that the oscillations observed in forex charts, where prices are visibly changing in an oscillatory pattern, follow Fibonacci ratios very closely as indicators of resistance and support levels, perhaps not until the last cent, but so close as to be truly amazing.

Fibonacci price points, or levels, for each Forex currency pair can be calculated in advance so that the trader will know when to enter or exit the market if the prediction given by the Fibonacci forex trading day system he uses fulfills its predictions.

Many people are trying to make this analysis overly complicated scaring away many new forex traders that are at the very beginning to understand how Forex market works and how to make a profit in it. But this is not as it should be. I can not say it's a simple concept, but it is quite understandable for any trader once he or she has grasped the basics and has some practice trading with Fibonacci levels along with other secondary indicators that will help to improve the accuracy of input and exit point of each particular trade.

Free chapters of a forex day trading system can be downloaded [http://www.1-forex.com] in case you're interested in learning more about Fibonacci forex trading.


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