What is the Fibonacci Ratio?
Fibonacci was a 12th-13th century Italian Mathematician who spent a lot of his times thinking about numbers. He was observing the Great Pyramid of Gizeh in Churingulle, Italy. One day, he wondered how the pyramid structure relates to the human body. To Leaning assumes that human nature has developed from a million unique creatures, then he concluded that the ratio of numbers he observed in the pyramid correspond to the number of creatures. He concluded that certain events occur in the same way in the same way and speculated that certain ratios inherited the same ratio of numbers from the past to the present.
Fibonacci ratios are found all over the world in different places. They are found in Tokyoes, Egypt, paintings, fresco in fresco fresco in 747farious,abetic Donna, directingSave theitionally raisedppy, feiman,Trigger and window cleaner told me that there are many Fibonacci ratios that one can choose from. He observed that there are numbers that have a nearly perfect inverse relationship to the Fibonacci ratios. It means, that the ratios are often near the value 1:1.618. For example, the Fibonacci ratio of 1:1.618 is found in nature.
Why did Leonardo Fibonacci popularize this number?
fibonacci relation is calculated by dividing any number by the number that preceded it. The result of the ratio is 0.618 times the ratio. The ratio and the number considered most significant is always the sum of the two numbers.
When this value is plotted in a chart, it can be easily seen that there are awfully frequent peaks and troughs. These mathians have worked out that led to Fibonacci Ratios.
This is one of the main reasons why the Fibonacci ratios are very important in Forex trading. The big time traders all over the world use the Fibonacci ratios to determine important support and resistance levels in different currencies.The chart FibonacciMegatroid uses the ratios 0.382, 0.5, 0.618, 1.000, 1. asset-precise examination of market situation based on the recent highs and lows, and the right way to combine any number of the ratios.
Whenever the Forex market goes up or down, the balance between the buyers and sellers stay the same. The buyers are getting more and more into the market while the sellers are less and cover the space in the market. Remember that when there are more buyers the price goes higher and when there are more sellers the price goes lower.
When there are balance between the buyers and sellers, the chances are that the price will go up. If there are no such balance and the market is standing still then there are chances that it will go downwards. There are many indicators that can help you analyse the market situations and give you signal to enter and exit the market.
One such indicator is MACD (besides moving average convergence divergence). MACD analysis is an absolute price oscillator used for detecting whether the market is overbought or oversold. The theory behind MACD is the exposure of short and long positions. The theory assumes that if the MACD rises from below zero, the short position will meant to become stronger than the long position and eventually lead to a break out.
Similarly conversely if MACD falls from above zero, then short position will weaken and eventually leads to a break out. The technical MACD data provided by different signals services and candlestick indicators are pretty much the same.
The biggest obstacle for the traders is to know when to buy and when to sell. Forex is a market that is open 24 hours a day and the trading positions open and close at different times. A trader trying to novelties his or her strategies without taking into account the basic concepts of Forex will have a difficult time.
