Fibonacci grid, at the moment, is one of the most common indicators of levels on the forex market. Fibonacci retracement grid is included in all POS terminals, including the most common in the Russian segment of the terminal MetaTrader.
Fibonacci numbers
Leonardo of Pisa (Fibonacci) and its sequence of numbers known since high school. Let me remind you that this is such a sequence. in which each successive number is the sum of the two preceding numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 ... etc. With regard to the forex market, namely the Fibonacci retracement indicator grid values of the levels we are interested in another property of these numbers? namely the relationship among themselves.
If you divide any number in the Fibonacci retracement indicator sequence to the previous one, we always get the value, which tends to 1.618. For large values, the accuracy increases. When dividing the term of the Fibonacci retracement sequence to the previous value by one, we obtain a value which tends to 2.618. Continuing to make the division of this analogy, we have other relationships.
It is clear that such values will be set, I advise you to stop at the following (multiplied a hundred to be displayed in percentages):
23.6%
38.2%
61.8%
76.4%
Fibonacci retracement grid MetaTrader4
To use the Fibonacci retracement indicator grid in the terminal MetaTrader4 you need in the top menu select "Insert-Fibonacci-Line."
By default, the grid can be displayed, not all the required parameters.
To add them, log into the properties of the Fibonacci retracement indicator and select the tab "Fibonacci":
In the column Fibonacci retracement level necessary to prescribe the actual value in the column description - signature. I usually start Fibonacci retracement from the default option, use a percentage.
By the above recommended levels, and also add more precise values, thus Fibonacci retracement obtaining the following:
23.6%
38.2%
50%
61.8%
76.4%
100%
1.236%
138.2%
150%
161.8%
176.4%
200%
etc.
maximum 423.6% I
Using Fibonacci retracement indicator Levels
Fibonacci retracement grid is used in virtually all types of analysis, at what precise application of the algorithm does not exist, the grid can be stretched in different ways, depending on your trading system.
But even so the grid is usually used to determine levels of correction, kickbacks, as well as to define the objectives of pulse movements (trends).
For this level of 0% is placed at the level of a local minimum, and hence 100% of the level of the local maximum, the rest of the grid lines will be lines of support / resistance. (Can be 0% and 100% post the other hand, since the grid is symmetric)
Below, the example shows the EUR / USD pair on a daily timeframe. As we see from the picture pair met resistance at 61.8% and 50% (50% - very often a strong resistance level).
Fibonacci retracement indicator levels are also used to determine the appropriate level of pulse movements (the size of the waves) on the market. To do this on a local level at least put up a grid 0%, and the local maximum level of 100%.
Here we consider the grid levels above 100%. Quite often, when switching motion is achieved 138.2% 161.8% 176.4% 261.8% on the trend and 276.4%. Depending on the strength of a trend can be achieved, and others.
For example, cite the situation on the daily chart the pair GBP / USD. As you can see the level of 161.8% was achieved just a couple, and began the resistance, from which the pair started the opposite direction.
Conclusion:
Fibonacci retracement indicator grid - is a powerful tool to determine support / resistance levels and objectives of the movement. Using Fibonacci retracement indicator levels will help to more accurately determine the best entry and exit points of the pair.
Offered in this topic to discuss the use of Fibonacci grid.
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