Of all the trading tools that I have never been used far my favorite tool to analyze Fibonacci studies. This is so big and complex investigation that did not even pretend to be experts in this field. Instead, I show how I can use the lack of information on my shop.
We are discussing only the three primary Fibonacci ratios and not minor figures, rectangles, arcs, bands, and the time axis.
First, a little history Leonardo Fibonacci was born about 1170 in Pisa, Sin City officials and merchants. He was an important mathematician and is credited the discovery of what is now called the Fibonacci series.
To travel to Egypt, he published his now famous Liber Abacci (Book of Calculation), which among other things, result in the order numbers:
1,1,2,3,5,8,13,21,34,55,89>> to Infinity
If you add one-digit numbers in order, before you get the next serial number, eg 3 +5 = 8 and so on.
After the first issue of the order if the measure is the ratio of an arbitrary number to the next higher number, sent 618-1, for example, 34 divided by 55 to 0.618. Later section you will get closer to Phi.
Measured in relation to the alternative number you get, 382, for example, 34 divided by 89 = 0.382, and it is about as far as the interpretation of the treatment to go. As the merchant, you do not know anything about this. All you need to know if the mapping software, Fibonacci potential. If this means that everything works out for you.
Three Fibonacci ratio, we used 382 and 500, 618, and how we can use for everyday business.
Uptrend measures the distance between the points A and B, and fell to measure the distance between point A and point B, where points are always the lowest point in recent uptrend and the highest point is the recent decline.
In the example below you can see a daily chart the yen / USD. Point is 119.09, and 123.16 B point. Calculate the 38.2% retracement you 121.61, 50% retracement is 121.13 and the 61.8% retracement is 120.64. For example. The difference between 119.06 and 123.16 is 4.07. If you calculate the 38.2% and 4.07 you get 1.55. If you then take 1.55 from 123.16 (Section B) you get a 38.2% retracement is 121.61. You can use the same principal other retracement level.
Our next example, 1-minute Dow Jones Point is 7.916.08 and point B is 7.877.70. Calculate the 38.2% retracement to 7892.36, 50% retracement is 7896.89 and the 61.8% retracement is 7901.42. For example. The difference between 7.916.08 and 7877.70 is 38.38, if calculated by 61.8% and you get 23.72. If you then take 23.72 and add it to your 7.877.70 B 7901.42 61.8% retracement. The only difference between the autumn and the uptrend is to add calculations to point B and drag the uptrend in point B.
So how can access all this information? Well, You'd be surprised how many will find safety at the level of support or resistance, Fibonacci.
I think that much of this may be that many players use these techniques to the analysis, the self-fulfilling prophecy, and partly because it is the natural order of the market. I use this technology to first identify the market trend, I'm after.
As soon as I see them, I will calculate retracement my retracement level. I looked at 38.2% retracement level and place my stop loss behind the 61.8% retracement level.
If you feel that the difference between 38.2% and 61.8% in high-risk, schedule, and I dropped by the same method, but got a lot tougher to stop.
Our next lesson I will show you how to find Fibonacci targets, would be a logical place to enter the market, a logical place to put a stop and a logical target.
No comments:
Post a Comment