The longer I am in this business and the more I study the behavior of markets, the more I realize human behavior patterns and market price movement patterns are deeply intertwined. Fibonacci Arcs, finding the high and low of a chart is the first step to composing. Then five lines are drawn: the first at 100 (the high on the chart the second.8, the third at 50, the fourth.2 and the last one at 0 (the low on the chart). The Bottom Line, these Fibonacci studies are not intended to provide the primary indications for timing the entry and exit of a stock; however, they are useful for estimating areas of support and resistance. Many people use combinations of Fibonacci studies to obtain a more accurate forecast. However, I do suggest you read the book Elliott Wave Principle by Frost and Prechter, published by John Wiley Sons.
The foreign exchange market, or Forex, is the largest market in the world. . Are the results the same?
Fibonacci And The Golden Ratio - Investopedia
These lines indicate areas of support and resistance. Many traders, including myself, use support and resistance levels to identify entry and exit points when trading markets. Fibonacci also discovered a number sequence called the Fibonacci sequence. Download free e-book Cooking in the forex. Forex is not a market in the traditional sense. . Most market technicians will track a retracement of a price uptrend from its beginning to its most recent peak. Support and resistance levels on bar charts are a major component in the study of technical analysis.
Golden ratio forex