Nov
26
Fibonacci Ratio procedure in Forex trading is a study in probability. Fibonacci ratios are great data finders in mathematical calculations. .236, .5 and .618 are common ratios. The Fibonacci ratio.382 is however the most followed in Forex trading.
You need to prepare a chart of a currency over a period. It will obviously represent a curve. If you are going for limit order, you need to subtract the ratio from the peak. If you are going for the stop order, just add the ratio to the lowest point that the currency touched in the said period.
You should check out this calculation in different time zones. You will find that there is a great consistency in numbers although this hinges on probability. Thus the ratio helps you to have an edge over other traders and apprehend large dips or rises in recent future. You may get apt clues for trade exits before the others.
Comments
Leave a Reply