What is Fibonacci Indicator Forex Trading Strategy?

What is Fibonacci Indicator Forex Trading Strategy?


Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “Fibonacci Indicator
Forex Trading Strategy” One of the most famous and popular forex trading
strategies is Fibonacci, named after the famous Italian mathematician. Considered as a medium-long
term trading strategy, we use it to follow repeating support and resistance levels. History
shows that the market moves in waves and Fibonacci takes advantage of this fact. Fibonacci ratios
can help us identify potential resistance and support levels on the financial charts.
The most common ratios are 61.8%, 50% and 31.8%. The Fibonacci numbers and ratios have
been famous among mathematicians and artists for hundreds of years. They represent many
things in nature and in financial markets and can be used as great analytical tools.
No math is required to use these numbers as the trading platforms do all the calculations
for us. All that we must do is make a decision based on these lines which appear on the graph.
The ‘Fibonacci indicator’ Forex trading strategy is one of the most well-known and
commonly used long term Forex trading strategies. This method relies on what is called a ‘Pullback’
and to fully understand how it works we must discuss the more fundamental concept ‘the
trend’. When we look at each price change individually it is very hard to explain them
and find a pattern as there are so many of them. Looking at the bigger picture allows
us to see trends on a larger scale.

3 Comments

  • Audrey Bernington

    February 22, 2016

    Hi, I am a Professional Forex Fund Manager. If you are a Forex trader or willing to invest in Forex trading to gain profits up to 100-500% in 4 weeks, please check our trading results at: www.pipscutter.com
    E-mail: [email protected]
    Skype : audrey.bernington

    You can leave your email address to us, and we will contact you to share detailed information about Forex. Thank you.

    Reply
  • Sienna Brooke

    March 22, 2016

    We are excited to introduce the “MT5 FX EA”, one of the best trading Forex Programs.

    Check a sample LIVE account from which we withdrew more than $1,205,000 during 7 months of trading, around $172,000/month. It’s only ONE account. And we have more accounts like this on our website.
    Please check the account below to see the proof:

    BROKER: WVC
    LOGIN: 31000
    PASSWORD: wvc123
    SERVER: 74.84.136.122

    Please take your time to look at our website where you can find the best proofs for our Robot performance and check more Live Accounts: www(dot)mt5fxea(dot)com

    Let us know if you have any questions! Let's make much money together!!!
    Email: [email protected]

    Reply
  • Kimberly george

    May 22, 2016

    Binary Options has been one avenue that has made me loose greatly just before i understood that a working and reliable strategy is the only solution to making a steady profit. Having gotten my strategy , i have been able to explore the best and most profitable/reliable strategy which never goes below $500 daily as trading profit . send me an email on [email protected] ,i will gladly share my working strategy .

    Reply

Leave a Reply