day forex system trading

free download forex software

The basis of many Forex systems is Fibonacci Forex trading.  Many successful and profitable Forex traders around the world use this type of a system.

These types of systems are based on Fibonacci ratios. Each of these ratios in combination with minor indicators helps identify accurate profitable levels for entry and exit.

The .382 Fibonacci ratio is among the most widely used.

Currency prices are continually fluctuating.  When looking at a Forex chart it is easy to see a variable pattern in the prices with peaks and valleys.  Peaks are called resistance levels while valleys are called supports.

To find the .382 ratio level, measure the rise or drop over the time of interest. Then this value is multiplied by .382 which gives the ratio.

When looking at a rise, the last value calculated is added to the total drop. If looking at a drop this value is subtracted from the total rise. This is the .382 Fibonacci ratio for either the rise or drop of interest.

With this ratio a strategy can be planned which increases the chances of success and profit.  The .382 ratio level calculated for a rise is a highly probable support and for a drop it will be a highly probably resistance.

This type of calculation and analysis gives a vast advantage over most Forex traders when used in conjunction with proper secondary indicators and as known ahead of the market.

For these reasons Fibonacci trading is accepted widely over the world, and is profitable and successful.

Read More Forex Articles