The Fibonacci Retracement Trading Strategy In Forex

Often when people are looking for a perfect strategy for Forex trading they will find multiple theories that are present, but hardly any of these theories are going to meet their exact needs. This is when people should know more about the Fibonacci Retracement trading strategy that is commonly used in Forex. Without this information people may struggle to get the right trades made because they could be using a strategy that is outdated or even worse not helping them in making money and keeping them only level or even worse losing money.

The first thing that people need to realize is the Forex Fibonacci Retracement strategy is based off of percentages. Now these percentages are going to vary depending on what people are setting up as their limits. However, the basics are still pretty much the same as they are going to contain almost the exact same information all the time. However, most of the levels are already set based off of the historical trends that are present and are usually seen in the numbers from 23.6%, 38.2%, 50%, 61.8%, 100%, and 161.8% and these are the standard numbers in this trading strategy. Some people may think they can take the numbers and make them even smaller to get a better analysis, but they need to remember if they are making the analysis figures any smaller it is going to lead to an over crowding of the field of numbers to analyze.

A second thing that people are going to want to do is set anchor points on their chart they are looking at. For example, if the chart people are evaluating is a day old they would want to look at the daily high and low. Then use these points as the anchor or even use a different spot, but they need to have the anchors in place to make sure they are in place to guarantee they are able to make the proper evaluation of the figures.

standard Forex Trading Strategy With Fibonacci Retracement Levels

Typically people will notice the Fibonacci chart is going to look like a candle with a shadow behind it. A great debate has raged on about how the anchor points should be affixed, but the most common theory is to attach the anchor to the shadow. When the shadow is attached as the anchor point it will guarantee the extremes in the market are going to be included and not just the present and non-extreme trends are included.

Something else that people are going to find interesting is the different strategy that is going to allow them to see the support and resistance points on the figures. These figures are going to be reflective of the current trends and will allow people to see more about what is happening overall and how it is affecting the value of the currency. Based off of these trends and the factors that are going on, people can start to make a trade that is going to make them some money because of when they are perfecting the trade. The best time to make the trades when using the Forex Fibonacci strategy is when the trade is coming into the entries or exit bounce on one of these trends in the past.

How to time the entries will really depend on the graph that people are using. However, what people will notice is the graph is going to have horizontal lines on it that are going to mark the percentages they have selected. As many people look at these they are going to think when a certain number is reached they are the factors that people need to be concerned about. However, what they do not realize is these can only be a clue, but people need to double check and wait to make sure the figure is not just an outlier. Once a couple of moves have been made in this trend, people will want to take action because this can be a sign that the funds are moving in the proper direction and not going to cost them money, but people need to realize they should have their trades set up to move on a certain figure.

Having a chance to trade in the Forex market can be exciting, but it also involves a significant amount of risk. The problem is if people do not recognize this risk they can easily lose everything they have in a single day. By learning more about the Forex Fibonacci Retracement trading levels, which is one of the most commonly used trading strategy, people will have a better chance to make money and minimize losses. With this information on the strategy, people will start to get the right trading strategy in place and be able to make the money they want to on a daily basis.

How To Use Fibonacci Extensions

When people are trading in the markets for Forex or even the stocks they will need to use a variety of tools to get the work done right. This is when people should know more about how to use the Fibonacci extensions to guarantee they are getting the right trade done to make themselves some money. Without the knowledge on how to use these extensions properly people could easily lose all of their money on a single trade or miss the trade that they needed to make to ensure they are making money.

The first thing that people need to do is identify their starting point on the curve. The starting point is often going to be the location where the last downtrend ended before it started to go back up. Then the second point is going to be the spot where the point reached its highest level and then the final point on the extension is going to be the point that the uptrend settles on as it dropped back lower. This is the basis for the extension to make sure it is going to be ran properly over a course of time.

Now when the extension is starting to get used people will notice a trend will start to develop and the pricing is going to go up and down based on the trends and normally will not go outside of the trend that have been shown in the past to be working. So people will be able to start to predict how they are going to be able to make their trades and know if they are going to make money on their trades or if the chance is present for them to end up losing most, if not all of their money they had in the investment they had made.

Having a chance to make money while investing can be a good thing. The issue that a lot of people will have to overcome is trying to figure out how to make money by predicting the trades they need to be making. By using the Fibonacci extensions it will be easy for people to find the right time to make the trades they need and guarantee they can make money without losing any of the money they had invested. With this, extension in place it will be easier to have the assurance that people need.