Fibonacci levels might sound complicated. They probably sound unfamiliar. And if you have studied them at all, you might think they border on the hocus-pocus. But Fibonacci levels are very reliable, very popular, and can be very profitable.
Fibonacci levels were discovered by an Italian mathematician named Leonard Fibonacci. He found that numbers follow patterns such as this: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
Do you see the pattern? The sum of any 2 consecutive numbers equals the next consecutive number. So 1+1=2, 1+2=3, 2+3=5, and so on.
The math even goes a little further. For example, divide 34 by 89 and you get.382. That pattern repeats itself into eternity (if you want to go that far).
In essence, Fibonacci found patterns in numbers. It was soon discovered that these same patterns existed not only in numbers, but throughout nature itself - including trading!
These numbers are where we get the Fib levels of.236,.382,.500,.618, and.764.
We humans tend to trade in patterns. Fib numbers expose those repeatable patterns to help us predict market movements.
To draw Fibonacci levels, simply use the Fib indicator in your trading platform. Find the most obvious high and low in the market, and draw the Fib level from the high to the low. The indicator should then divide that high and low into Fib levels.
Now notice how price reacts around those numbers. Do you see price stall? Do you even see price turn around? More than likely, you do.
Again, this is because humans unconsciously trade in patterns.
Now does this mean you can use Fib levels in a vacuum with no other indicators?
Absolutely you can! If you want to lose money right and left!
You see, Fib levels are reliable, but they are simply another clue to the market. They are not meant to be traded alone. But becoming comfortable with Fibonacci levels will give you another weapon in your trading arsenal.
0 komentar:
Posting Komentar