Fibonacci Retracement Levels
In this course, we will explain Fibonacci Retracements ("fibs"), a totally different support/resistance indicator. Fibs are based on certain mathematical relationships, expressed as ratios, between numbers in a series. Their discovery was popularized by the thirteenth-century mathematician Leonardo Fibonacci. They have applications in fields as diverse as biology, music, art, and architecture.
In this course, we will just focus on what’s relevant to trading.
As in any financial market, Forex prices don’t move straight up or down. Instead, they zigzag within their overall longer term trends or ranges, as the market tests recent short term support and resistance. We will review why it is important to study multiple time frames before placing a trade, and how to examine them on a chart.
The simulataneous analysis of multiple time frames helps you can gain a better understanding of what fibs are really measuring and how the price is really behaving.
In this lesson we will introduce another type of support/resistance indicator—Fibonacci Retracements. The Fibonacci golden rule is based on certain mathematical relationships, expressed as ratios, between numbers in a series. Their discovery was popularized in the Western world by the thirteenth-century mathematician Leonardo Fibonacci. They have application in fields as diverse as biology, music, art, and architecture.
In this lesson, we will focus on only the relevant Forex Fibonacci applications.
This lesson on Fibonacci Retracement will illustrate how to find minor support/resistance points which a trader may not see in a higher time frame.
The FX Academy recommends utilizing multiple time frame analysis in intervals of approximately 4X shorter and/or longer, for example 1 Day, 4 Hour and 1 Hour charts of the same pair or cross, together at the same time.
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Using Fibonacci retracement indicators on a graph is an excellent way to show Fibonacci levels.
Applying Fibonacci retracement is not difficult at all. In this lesson, we will show how to draw FIBS in easy steps.
Utilizing Fibonacci Forex retracement ratios as a support/resistance indicator can be a simple, useful tool.