Fibonacci Retracement Levels and Natures Law
One common technical FX market indicator used by fx traders is the Fibonacci indicator. It is based upon an infinite number sequence, which was discovered by 13th Century mathematician Leonardo Fibonacci. Basically you get 2 numbers like 1,2 and add them together and you get the 3rd number in the sequence. For example (1+2=3, 2+3 =5, 5+3=8, 8+5=13). The fibonacci retracement levels are derived from the fibonacci number sequence and some of the ratios.
Fibonacci Retracement Levels:
100%
76.4%
61.8% (key level)
- 50.0%
38.2% (key level)
23.6%
24%
FX traders that use this method tend to pull back or reverse at key Fibonacci retracement levels.
Traders that use this method draw from the major high to the end of the move. There are 3 values that you need to concern yourself with, they are, 38.2%, 50.0% and 61.8%.
However the 2 most important values are 38.2% and 61.8%. What you are tying to do is gauge support and resistance. In an up trade you want to buy dips because you think it is going to go higher. So you estimate were the dip might end. The price tends to retrace 38.2% to 61.8% of the prior move before continuing in the same direction. With this technique you are trying to gauge support and resistance.
The fibonacci mathemathical concept of 38.2 % and 61.8% retracements, numbers, ratios or percentages are a part of nature. Believe it or not nature and forex trading have a correlation. The fibonacci concept can be seen in Mona Lisa’s face, a nautilus shell and in the circumference of a sunflower seeds. This principle is also known as nature’s law.
A good place to learn this technique or sharpen your skills is will an automated software application and a demo account. Remember when you trade FX you with have winning trades and losing trades. So, if in doubt get out and don’t trade more money then you are willing to lose.
For more information about Forex please visit
http://www.forex-money-exchange.com
This site has a lot of great forex information
Article Source:http://www.articlesbase.com/currency-trading-articles/fibonacci-retracement-levels-and-natures-law-1726758.html
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“If I could only find the best Forex software out there…I’m sure I’ll be earning a full time income and I could finally quit that boring day job!”
Believe it or not, that’s how many Forex traders – newcomers and veterans in the biz think of fx robots. Unfortunately, that’s NOT the way it works! Forex isn’t about finding and downloading the best programs around, which would clear up the mysteries surrounding the currency you’re focusing on.
True, trading robots are made to help us with our daily Forex trading efforts. After all, it’s impossible for one to keep up with all of the minute-changes and updates going on at the Forex market on his own.
These pieces software are meant to keep up with the latest changes and notify you about it. With the parameters and conditions you give to it, the program will decide whether it should trade for you or not…or see if you’re about to gain or lose money from a transaction and will act accordingly.
And that brings us to an important point – it still needs input from you!
Robots, without the parameters you set, are pretty much like top-tier and high-end cars like a Ferrari. They’re beautiful, jam-packed with features, etc. BUT they’re useless without the driver.
And how are you going to manage your piece of software – adjust the options, set the parameters, deal with the features, etc. if you don’t know even a single thing about Forex or your market?
If you can’t trade successfully and profitably on your own, if you don’t have even the slightest clue about your market, then even the BEST robot out there can’t help you.
That’s NOT to say that Forex robots are useless. No, matter of fact, I’m using one of the MOST respected and widely used Forex software. These robots are useful…BUT only if you have the knowledge and understanding to back their features up.
Samuel Mckenzie is a forex profesional. Visit his forex reviews to compare the most popular Forex products.
Article Source:http://www.articlesbase.com/currency-trading-articles/breaking-the-myth-about-forex-software-and-robots-1575515.html
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Even the best Forex trading method in the world has losing trades.
That’s a FACT.
Of course, you know this…
-but what you might not know is how to protect your trading account when a trade starts to go against you.
I show you how here with a brand new “Breakfast Trade” I recorded a few days ago using one of the 3 methods from my Forex Income Engine 2.0 trading course.
http://www.myforexdiscovery.com/y/?i=1057655&u=2&l=f96
(please allow a few seconds for that page to load)
Watch how, after I get in the trade, the initial goal is to move my stop to ———.
(I reveal this in the short video.)
Once you do that, you’re PROTECTED, no matter what happens.
And that’s the best way to trade, in my opinion.
We’re down to 101 copies of the Forex Income Engine 2.0. After you watch the new trading video above, go ahead and pick up your copy before we sell out. Remember – it comes off the market this Tuesday.
http://www.myforexdiscovery.com/y/?i=1057655&u=2&l=f96
In addition to the big 5 pound white box that contains the core Forex Income Engine 2.0 training materials, he’s also throwing in at least $2,591 in COMPLIMENTARY bonus training…
Here are all the extras you get:
* 8 weeks of complimentary semi-private COACHING ($2,000 value)…
* Instant Forex broker account bonus (a value of $100 to $2,500 or more)…
* FX Impact’s “Forex Executor Pro” MetaTrader 4 software ($97 value)…
* Trading psychology expert Norman Hallett’s “Disciplined Trader” web training session ($197 value)…
* Technical trading expert Toni Hansen’s “3 Strategies You’ve Been Taught About Trading That Are Wrong (& how to fix them)” web training session ($197 value)…
If you want to finally become an Independent Master Forex Trader, in as little as 20 minutes a day, ESPECIALLY if you’re inexperienced & have a little time…
- then this is probably going to get you the most “bang for your buck” compared to anything else on the market in the past, now, or in the future.
(and it disappears on Tuesday)
So, if you’re “on the fence”, I urge you to take me up on what’s essentially a 60 day trial to see if this is right for you. If you don’t like it – send it back & I’ll refund your investment.
(plus, I have a 3-pay plan to make it ultra easy to get started)
Rob Trader – Forex Expert
http://tradingtoollist.co.cc/
Article Source:http://www.articlesbase.com/currency-trading-articles/recovers-gracefully-from-a-losing-forex-trade-1574252.html
An important part of the trading process is to understand what the market is all about? It is well known that this market involves the exchange of currencies where it is recognized as the world’s largest liquid financial souk, where trillions of dollars’ worth of currencies is being traded daily. The Forex trading market has many players that make a living and a killing out of it by buying and selling currencies. There are also times when these traders have lost due to uncertain circumstances.
Your next step as a beginner would be to get a broker who will assist you in trading by executing certain procedures on your behalf and at the same time offer you potential pointers that may be fruitful. Today there are many automated programs that assist individuals in the Forex trading market, which are known as Forex robots. These robots are computer programs that have been created to basically help beginners to understand, train, execute and get themselves familiar with the Forex trading market. Most of these programs have a dummy feature which enables beginners to test their trading strategies in a live atmosphere fully safe with no real money being placed down.
Last but the least the most sensible advice that can be given to any beginner, is to control their emotions and not let it get in the way of their trading. Forex traders are required to be alert and to realize when they have to cut their losses so that they can preserve equity in order to bring in the profits.
