Use Fibonacci Retracement Tools and Make Your Trading Profitable One.

[Nancy parez]

 

What Is Fibonacci retracement?

The Fibonacci retracement tool plots percentage retracement lines based upon the mathematical relationship within the Fibonacci sequence. These retracement levels provide support and resistance levels that can be used to target price objectives.

Fibonacci Retracements are displayed by first drawing a trend line between two extreme points. A series of six horizontal lines are drawn intersecting the trend line at the Fibonacci levels of 0.0%, 23.6%, 38.2%, 50%, 61.8%, and 100%.

How to calculate Fibonacci retracement

As these percentages are the same in every Fibonacci retracement tool, you don’t need to manually calculate anything. However, the way to get them is to start with the Fibonacci numbers.

Let’s create a sequence of numbers that starts with zero and one, and keep adding the sum of the two preceding numbers to the current one. If we continue this indefinitely, we get a number string that’s called the Fibonacci sequence.

Excluding the first few numbers, if you divide a number by the number that follows it, you’ll always get a ratio close to 0.618. For example, if you divide 21 by 34, you’ll get 0.6176. And if you divide a number by the number found two places to the right, you’ll get a ratio close to 0.382. For instance, if you divide 21 by 55, you’ll get 0.3818. All the ratios (except 50%) in the Fibonacci retracement tool are based on some calculations involving this method.

THE FIBONACCI SEQUENCE IN DAY TRADING

in the Fibonacci sequence, each number is a sum of the two numbers that precede it. As such, the sequence goes like this: 0, 1, 1, 2, 3, 5, 8…

The overall formula is Xn+2= Xn+1 + Xn.

By tweaking this formula, the Fibonacci retracement tool can be used in the markets to help in decision making to identify pivot points or areas that the price is likely to move to. This is more so useful in a trending market.

To use it, you don’t need to have any knowledge on how the Fibonacci sequence works.

What are Fibonacci retracement levels?

Fibonacci retracement levels are support and resistance levels that are based on the Fibonacci numbers. Those are 23.6%, 38.2%, 61.8% and 78.6%. When drawing Fibonacci levels, your trading software is likely to include the 50% level, even though it is not officially a Fibonacci retracement level.

Fibonacci Retracement + Support and Resistance

One of the best ways to use the Fibonacci retracement tool is to spot potential support and resistance levels and see if they line up with Fibonacci retracement levels.

If Fibonacci levels are already support and resistance levels, and you combine them with other price areas that a lot of other traders are watching, then the chances of price bouncing from those areas are much higher.

You can learn more about forex trading profitable strategy at forum.forex

 

Thank You

[⭐ analyst75]

This is easier said than done.

 

Profits from games of knowledge: https://www.predictmag.com/ 

[Resolve]

On 5/20/2022 at 2:06 PM, analyst75 said:

This is easier said than done.

 

Profits from games of knowledge: https://www.predictmag.com/ 

We will need to learn about making the correct use of the Trading based Tools.

[uncle gober]

The existing training and learning must be able to be considered properly, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from tickmill.

[Resolve]

On 6/9/2022 at 9:10 AM, uncle gober said:

The existing training and learning must be able to be considered properly, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from tickmill.

The leverages that we are using must be such that more profits is possible for us.

[uncle gober]

The use of existing leverage must be able to be considered carefully, this is done so that traders can be more leverage in getting maximum trading security and comfort like what I got from Tickmill.