Fibonacci Forex Trading

Fibonacci Forex Trading

Fibonacci trading is a technique employed by many brokers that does prove profitable to a large extent. It is preferred by a lot of professionals when they trade in the Forex market and is one of the reasons they are successful.

Fibonacci was a genius mathematician who developed a series of numbers which was later denoted as the Fibonacci series in his name. In the series any number follows the rule of being the sum of the past two numbers.

The Fibonacci pattern is prevalent in many natural as well as man made structures and is a subject of curiosity for people along the globe. Traders use Fibonacci ratios derived from these numbers when pursuing a trade like .236, .50 etc.

When the financial charts were carefully noticed it was figured that there is a resemblance to the Fibonacci sequence in the oscillations. They are not deadly accurate but do give a fair idea of the support and resistance levels of the given currency pair.

The proportions are calculated beforehand to aid the traders in making the decisions as the charts are found to be extremely volatile at those proportions. The trader gets an idea of when to enter or exit a trade which is all he requires to make profits.

There are selfish traders who make the analysis through the use of Fibonacci extremely complicated in an attempt to scare away other traders to use this method. It is true that the use of the sequence is not very easy but with practice it is quite possible for any trader to understand its working.

It would be nice for everyone to try trading with these signals and see if it works for them. It can be used in a combination with other signals to further assure success.

Leave a Comment

Contact Us - Terms & Conditions - About Us - Privacy Policy - Cookie Policy
----------------------------------------------------------------------------- 
General Risk Warning: Trading Binary Options carries a high level of risk and can result in the loss of your investment. As such, Binary Options may not be appropriate for you. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience and risk tolerance. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to Binary Options or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

FREE DEMO ACCOUNT $10.000