Trading forex Fibonacci strategy can be a very profitable method of trading if you know your stuff well. Basically the Fibonacci strategy makes use of the various fib levels as support and resistance whereby you can enter your trade and exit your trade.
There are several levels in the fib sequence and the more significant ones are the 0.382, 0.5 and the 0.618. The Fibonacci is made up of retracement and extension as currency pair movement is usually in the form of waves. It is very common for the currency to move to certain point and then retrace back to the Fibonacci 0.382, 0.5 or the 0.618.
Here is how you can trade currency with the Fibonacci strategy
If the price retraces back to the 0.382 and then move up, it will most probably extend its movement to the 1.272 level and this can be your target profit.
If the price retraces back to the 0.5 and then move up, there is a high chance that it will later extend to the 1.382 and then to the 1.618 level.
If the price retraces back to the 0.618 and then move up subsequently, it will be more likely to move straight to the 1.618 level.
Based on this information, you can then use these levels as a target profit. However it is not advisable to trade based on the Fibonacci alone, the Fibonacci strategy usually includes indicators like stochastic and MACD to help you plan your entry and exit more precisely.
0 komentar:
Posting Komentar