FIBONACCI THE NUMBERS

FIBONACCI THE NUMBERS

Everyone should know that all moving averages are lagging indicators. It makes no difference the type, they all lag. Only after the fact that you can say the market has turned. While it is valuable information and is acted on by taking the position, it will not help much in getting the best profit potential of your trade. Do you use exclusively and then get out, you will discover 2 things: 1) will be chopped when you had a profitable trade at a time, and / or 2) they will take out the breach and now I do not know what to do.

I can sum up everything you need to know about fantasy fantasy numbers and the corresponding ratio of 1.618. The nature and the physical universe wants. They are everywhere from the pyramids, to mountain ranges, seashells, forests, etc. So why not markets?

Fantasy figures are real time. This is not a lagging indicator here. When the market hits a fib number from the current Emma, ​​it's telling you that there is a natural stopping point, please take some profits off the table. When the market goes through a fantasy number, like a hot knife through butter, it gives additional information on the dynamics of movement. Currency pairs that are relatively more volatile than others will experience more fantasy numbers more often than less volatile pairs. The major pairs, GBP / USD and USD / CHF are the most volatile followed by the EUR / USD, then USD / yen.

So I trade in Britain and Switzerland, because they go to extremes more often than other couples. These extremes [233 and 377] produce amazing profits on a regular basis. It's rare to get up to 233 euro mark before it crosses back over the tunnel. It just happened here lately, but if you go back a few weeks, months and years, you will see that it expects this to happen often is not likely. It is not the case in Britain and Switzerland.

The higher fib numbers really are giving you that important equation: price = information. They are screaming exhaustion. If we do the work in your currency pair, you will see that the market share after hitting these levels almost always involves a breach or early major move in the opposite direction. Is not it useful information?

For those of you who want to trade less volatile pairs, you may want to include the 34 level in your profits. In this case, if not, can give up so will enable this level pass.