Monday, March 2, 2009

Five techniques of trade on the Fibonacci

Fibonacci was a fairly popular technology tool in the end of the last bovine market fund market. Prior to this, traders have used it on the futures market, while software packages to work in real time, not moved it in the stock market. Its popularity has increased, as traders experimented with its mystery in mathematics and discovered many advantages of this method.

Fibonacci ratios describe the interaction between trend and counter-trend movements - the restoration of 38%, 50% and 62% form the primary level of correction. Apply these percentages after the trend in either direction to predict the degree of counter-trend fluctuations. Put a grid of the most obvious waves up and down and see how the interest levels of overlap with the key price levels.

Coincidence graphic patterns and levels of recovery may indicate the excellent shopping opportunities. Keep in mind that the reconstruction work badly in a vacuum. Always check out maxima, minima, and moving averages to confirm the importance of a certain level.

Differences between the levels of recovery and basic graphics model of the market leads to a noise instead of profit. Leave this schedule, if there are contradictions between different aspects of the analysis. These differences produce large amounts of fast-turn at the price charts. In contrast, a strong correlation between levels of Fibonacci and graphical models in a very predictable turn at narrow price levels.

Let us consider the five techniques to improve your skills with the Fibonacci levels. Add these techniques to your arsenal of technical and apply them in their subsequent sale. We are confident that they will serve you very well for many years.

The first increase / First Failure

The first increase / First neudachaotmechaet the first 100% of th previous recovery trend in the format of your time. This provides early warning of the spread after the new maximum or minimum. 100% th recovery violates the basic direction of price movement and trend ends, where there was a correction. From this level, the old trend can recover, if he breaks through the old 38% of the first level. More often, traders will use this level to open the position with a small risk against the old trend.


Hunting for a parabola

Parabolic movement tends to occur between 0% - 38% and 62% - 100% Fibonacci levels in all the trends. This trend provides an excellent opportunity to find large movements when searching for deals. Watch for clusters formed in levels of recovery of 38% or 62%. Then use a simple strategy to trade on the breakthrough, when the price comes out of this area densities. The next impulse can be dramatic when the price moves like a magnet back to the old maximum or minimum. Of course, the strategy works only if you can find these levels in advance.

Continued GEPa

You can often determine the exact price at which end the rally or decline, using the continuation GEPa as a Fibonacci extension tool. Identify GEO, through its placement in the dead point of a vertical price wave. Then start the grid at the beginning of the Fibonacci trend and continue it so that GEO was under 50% th level of recovery. Continuation of grid points to the final price for the rally or fall.

Night grid

Select an active marketing tool, and start a grid with a maximum (or minimum) observed in the last hour of the session. Build a grid in the opposite direction to the minimum (or maximum) of the first hour the next morning. This sets a price wave that a trader can use to find intra-day turn and breakthroughs. Nighttime Mesh also offers a way to trade in the morning GEPe. GEO will often pass through the critical level of recovery and provide an opportunity to enter the market with little risk to the rollback.

Many traders can not decide where to begin Fibonacci grid. Here we offer you admission to help place it in the most convenient place. The absolute maximum or minimum price wave is not always the best starting point for the grid in most of the time formats. Instead, find a small double bottom or double top within the clusters, where the trend. Place one end of the grid for the second maximum (or minimum), instead of first. This would allow Elliott to take over a wave corresponding to the trend, in which you are trying to sell.



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