What's the .382 Fibonacci Ratio in Forex Trading?
It was mentioned in a past article that Fibonacci forex trading is the basis of many forex trading systems used around the world by profitable forex traders. These systems are all based on the famous Fibonacci ratios (.236, .50, .382, .618, etc.) and each of them can specialize in a particular ratio along with other minor indicators in order to make the pinpointing of the entry and exit levels as accurate and profitable as possible. One of the widely used Fibonacci ratios is the 0.382 ratio. As it can be easily seen on any forex chart, currency prices are continually changing and they follow an oscillatory pattern with peaks and valleys. The limit of the peak is usually called a resistance level while the valley is usually called a support. In order to find the 0.382 ratio level what you do is, first; measure the size of the drop or rise over your time of interest. Once you have that value you multiply this by 0.382. Now depending on what you are looking at, a rise or a drop on the price of the particular “currency pair” you are trading, you will add the last value you calculated to the total drop or subtract the value from the total rise. These operations will give you the 0.382 Fibonacci ratio level, either for a rise or a drop on the chart you are analyzing. Once you have the value you can then start planning the strategy you will follow in order to make a high probability profit from this valuable information. For the 0.382 ratio level calculated for a recent rise in the “currency pair” exchange price, your calculated level will be a highly probable support and for the case of a level calculated for a recent drop of the prices your level will be a highly probable resistance. Knowing this ahead of the market and having the proper secondary indicators, will give you a huge advantage over most forex traders, and that’s something any trader would like they could count on. That’s why Fibonacci trading is so widely accepted over the world, and of course, why it’s so profitable and successful. Free chapters of a forex day trading system can be downloaded at http://www.1-forex.com in case you are interested in learning more about Fibonacci forex trading.
Other Forex Trading Articles
Futures Trading Software - Choosing a Package For Big Profit Potential! The growth of the Internet has seen traders look more at the use of futures trading software as a way to increase their profit potential.Today, many vendors are selling futures trading software packages that make 50% annualised gains a reality.While there are many good systems, there are also many that don’t perform. This article i ...Day Trading Futures When day trading futures, you enter and exit all positions in the same day - never carrying a position overnight. Since the overnight moves of the market are difficult to predict, many traders avoid risk by day trading. Ironically, the public believes that day trading is the riskiest way to trade.THIS IS A MYTH!Some traders day tr ...FX Trading Trading money in the global markets can be great way to make more of it, but it can also be a lesson in how to lose money quickly. More than $1 trillion is traded every day on the foreign currency exchange (Forex), and yet no centralized headquarters or formal regulatory body exists for this form of trade. Foreign currency exchange is regulated ...Online Trading Online trading has gained popularity over the years because people from all backgrounds find it to be a more convenient way to trade stocks and bonds. In the past, online traders only made small deals or purchasers in order to pick up a little extra money. There are still people who go for this method of trading online, however, a lot of people ...Forex Trading: Making Money With Money Forex trading is one of the growing markets for making money in today’s world economy. If you are part of the forex trading game, you need well thought out and planned strategies. You also need up to the minute information and reliable data to help you along the way. With this said, in order to be successful at forex, you’ll want to invest in ...Understanding the Forex Trading System The forex trading system involves buying and selling foreign currencies, it is the biggest financial market in the world and on an average the trading ranges anywhere between united states dollar one and a half trillion to two trillion everyday. Trading goes on round the clock on all working days throughout the globe. If you plan to explore inve ...Trading with Support and Resistance Support and resistance has long been a staple in trading indicators. Support and resistance is a simple concept that has its roots in the supply and demand theory. When looking at a chart you see price action that appears to be random but, by adding support and resistance theory to the equation you will see that the price movements are not alway ...Forex Broker Commissions Most forex brokers do not charge commissions. GFT Forex Brokers, like other forex brokers, are compensated by revenues from their activities as currency dealers, including proceeds from buying, selling, converting and holding currencies, interest on deposited funds, and rollover fees.Many may wonder how brokers work without commissions. T ...The Mind Game of Day Trading "If you have no confidence in self, you are twice defeated in the race of life. With confidence, you have won even before you have started." Marcus GarveyThe first step in controlling fear is to face it. If you are not willing to face your fear, then fear, not you will control your life.Courage is moving ahead even thoug ...The Rubber Band Forex Trading System Of the many trading methods available out there there is one that has been recently realized and that is amazingly simple and uses the forex trading platform of your choice. This trading method will show you how to build your own indicator suite based on the author's recommendation, but this method is not only colored screenshots, it will allow ...Bollinger Bands – How to Use Them to Make Massive Profits Bollinger bands will help you to predict big trending moves, act on big trend reversals and finally, time trading positions with greater accuracy for bigger profits.Here we have related Bollinger bands to the currency markets (as it is here that they are most useful) - but they are useful in all financial markets.What are Bollinger ...Top Seven Questions for Starting Projects More Effectively We all are project managers. Some of us manage projects like vacations or reunions, while others run implementations of new software systems, consolidation divisions of companies, launch new products, or build buildings. While the scale changes for different kinds of projects, and complexity changes as more people are affected and involved; at ...Day Trading Basics A means to survive, an avenue to progress and vista to exchange thoughts, ideas and feelings… ‘Trading’ is perhaps as old as human existence on earth. It all began when the primeval man began swapping small useful items with each other in order to live and fulfill many of his needs. The time that followed saw a persistence and enhancement of thi ...Forex Trading Training - Do I Really Need It? Having a good amount of Forex trading training is essential to anyone looking into the Forex market seriously. The reason that Forex training is so important and vital is because the Forex market is extremely competitive, volatile and fragile. Because it is open twenty-four hours a day the risk is a lot higher and proper trading education helps ...How To Become A Day Trader Like all businesses, day trading can be extremely lucrative. I suppose that is the reason why so many people want to become day traders. However, the risks are equally great and it is important to know what it takes to become a day trader.There are a few things you need to consider before you decide whether a day trader job is suitable fo ...What is the Foreign Exchange Market Introduction Foreign exchange, Forex or FX as it is know is the Planet’s oldest and largest financial market. It is the place where one country’s currency is exchanged for that of another. On average $2 Trillion exchanges hands every day in the form of currency transactions. This volume makes equity markets look minuscule by compariso ...Forex Brokers & Online Trading There is one important thing you will need to do before you start your Forex trading career. This is, you will need to set up an account with what is known in the trading world as a Forex Broker. Once you start your search for the perfect broker, you may feel there are too many of them who offer their services online. Deciding on a broker requ ...Day Trading Securities - How To Make Money Day Trading Online What is day trading?Day trading is an extremely risky way of investing in the stock market. Day trading is carried out by day traders who rapidly purchase and sell stocks over a single day period in the hope that for the very short period over which they hold the stocks (ranging from just a few seconds to a couple of hours) the value will ...Online Day Trading Investors who trade online have instant access to their accounts and near instantaneous trade tractions. Because of this, it is important for traders to understand how to protect themselves when the market is moving fast. Fast-moving markets.When you trade online, you have to know what you are buying and what risks you are taking to avoid ...Comparing Futures and FOREX Trading How did the whole futures market begin? It all started with agricultural produce in the last century. Farmers began to contract with buyers to sell their produce at a future date and there was a kind of stabilization of demand and supply through the year. This is why it was called 'futures'. Today, however, the term encompasses a lot more than t ...The Monster Traffic Way Of Currency Exchange In the advent of globalization, “the name of the game” is not money alone. Can we include currency exchange? In historical times, the mode of exchange is by bartering a valuable object with the desired other object. Currently, this may exist informally but vaguely, an item for sale would more or less be worth a sum of money.But as the ...What Are the Hidden Odds of Trading Anyone who is vaguely familiar with gambling knows that the house has the odds in their favor. Do some people leave a casino with large winnings? Yes, but that's because they left before they lost it back to the casino. If they had won and then continued to play long enough it is a mathematical certainty that would lose all of it back to the hou ...Forex Day Trading Rules: Preserve Your Mental Equity Forex day trading rules often revolve around techniques, technical indicators, and equity management. All these are of course important.Without proper equity management new traders are tempted to take risks far out of proportion to the amount of equity they have in their account.Many seasoned traders recommend not risking more than ...Why Choose Online Stock Trading? A century ago, the stock market was beginning to take shape. It was very different from what we know today as online stock trading. As time moved on, stock trading developed more and more and turned out to be a great way to make money. By giving the investors a variety of choices such as online stock trading, breakout systems, futures trading, h ...How Many Forex Order Types There Are And How to Use Them In Your Favor Once you have decided to enter the Forex trading world, one of the first things you will have to do is downloading the trading station provided by your chosen forex broker for free. When you open your trading station software, you will find there are two main ways to enter a market or, said in another way, there are two ways to place an initial ...Is there a Bad Breath Solution? Do you suffer from bad breath? Are you sick of feeling self conscience about your bad breath? Breath freely I say.Why suffer from bad breath when you can do something about it? I have never understood why people suffer from things that can be fixed. If I woke up one day and discovered I had bad breath, well maybe not a good example si ...Forex Investment - Making The Decision Is The Hardest Part When investing in the Forex market, making a Forex investment can be the best decision and can definitely earn you the best profits. Because there is very little in the way of barring entrance to the Forex market making a Forex investment is an excellent opportunity. Especially for those individuals who have low investments to start with, this c ...Learn Online Forex Currency Trading Online Forex currency trading is a fast business, and if you do not have the proper training, it can be very easy to lose your money in it. Make sure you have all the right information and skills before you even begin buying and selling currencies. Where and how do you get the right education? Here are some ideas.Learn OnlineTakin ...Forex Currency Trading Basics: Are You A Bull Or A Bear Forex currency trading is booming around the world and is quickly becoming the preferred choice of many online and offline investors, but what is Forex and how can you get involved in this attractive new investment arena.First of all lets explain what Forex actual stands for and what it involves.Forex stands for Foreign Exchange an ...An Overview Of Forex Trading Forex, is an exchange that allows investors to trade national currencies through the foreign exchange. This is the worlds largest market for currency, based on the Dollar, anywhere between 1 – 2 TRILLION dollars are traded upon this market on a daily basis. This type of trade is typically performed online or on the telephone. By taking advantage ...Can You Become A Forex Introducing Broker? Any individual or company that has contacts with individuals or other companies who might be interested in trading forex online, either by themselves or through a forex broker can become a forex Introducing Broker.Below are some typical examples of companies that can become successful forex Introducing Brokers (IBs). This list is not e ...Short Introduction to Elliot Waves as a Resource in Forex Trading The Forex market has the largest volume of trades per day among all the capital markets you can trade. This characteristic together with it’s high leverage and around the clock trading schedule makes Forex very attractive for traders around the world.Once you enter the world of forex trading you will realize that this market has strong tr ...Types of Foreign Currency Hedging Vehicles The following are some of the most common types of foreign currency hedging vehicles used in today's markets as a foreign currency hedge. While retail forex traders typically use foreign currency options as a hedging vehicle. Banks and commercials are more likely to use options, swaps, swaptions and other more complex derivatives to meet their ...Mentally And Physically Preparing for Teeth Whitening If you think that all you need to do to get your teeth whitened is to keep applying whitener, then chances are your level of success isn't going to be as high as you'd like. There are a number of things you need to do prior to starting the teeth whitening process, in order to have the best chance of success. You can do some of them at home, but ...Why Should You Go For Teeth Whitening Teeth Whitening has a growing demand in all parts of the world. After all it's all about making a first impression last forever with your beautiful smile. But many people are still suspicious of whether they should go for teeth whitening or not and the risks associated with it. If you have decided to make your appearance more pleasing and charmi ...
|
