Excerpt from: Forex Training
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| September 26, 2008 | | Using Fibonacci retracements can help you on the currency market | One of the most popular methods of technical analysis in forex trading is the use of Fibonacci retracements. Investopedia describes Fiboancci retracements:
In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak and trough)
on a stock chart and dividing the vertical distance by the key
Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%. Once these
levels are identified, horizontal lines are drawn and used to identify
possible support and resistance levels.
It can seem daunting to learn these Fibonacci retracements at first, but some practice and study can help you incorporate them into your forex trading strategy.
| Topic Tags: currency market, Fibonacci, Fibonacci retracements, forex strategy, forex trading, forex trading strategy | |
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