Author: The Moving Average

HomeArchive for
Indicators

Curious about the Fibonacci Trading Strategy? Here’s what you need to know. There is a trading strategy that has been around for over 900 years and is based on an Italian mathematician’s sequence. This strategy is known as the Fibonacci Trading Strategy. The Fibonacci sequence is a series of numbers where each number is the sum of the previous two numbers. For example, 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, and so on. This sequence has been applied to trading by identifying key levels of resistance and support. Traders use these levels to place orders and can also use them for stop-losses and take-profit targets. One technique is to identify the last high and low points of a chart, and then use the Fibonacci retracement tool to place levels on the chart. These levels can then be used to buy or sell at the market. Another technique is to use the Fibonacci extensions tool, which is used to identify potential profit targets. By adding the extension levels to the previous high or low, traders can determine where to place their take-profit orders. Overall, the Fibonacci Trading Strategy is a popular and effective way to make informed trading decisions. By understanding how to use this strategy, traders can potentially increase their profits and reduce their losses.

The market has ebb and flow patterns, which are not random, but are Fibonacci ...