Forex | FX Operator | Currency Trading

Since last year, I have been analyzing Fibonacci calculation on the Forex markets. The currency pairs I have done test on were EURJPY, EURUSD and GBPUSD. All results were impressive especially trading on Fibonacci retracements. Although I did not test on other pairs, but a glance at different pairs from exotics to crosses, all seems to react to the Fibonacci levels.

From this it shows that the price movement is not random and thus created a self-fulfilling prophecy around the support and resistance areas. This in turn can also assist us in our trading. Knowing the Fibonacci support and resistance areas, we are able to determine when to enter and exit a position. One thing to note, although we know exactly where to enter and exit a position with the Fibonacci level calculated, however, we should not execute our trades at the price given due to fake breakouts. Rather, we should enter a position using a percentage calculation from the Fibonacci retracements and extensions, or by adding 10 or 20 pips away (depending on the ATR of a currency pair) from the calculated points.

Comments

Add New Search RSS

Write comment
Name:
Email:	do not notifynotify
Website:
Title:
UBBCode:	-color-aquablackbluefuchsiagraygreenlimemaroonnavyolivepurpleredsilvertealwhiteyellow -size-tinysmallmediumlargehuge
	Please input the anti-spam code that you can read in the image.

Powered by !JoomlaComment 3.21

3.21 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

---