I was first introduced to the Fibonacci sequence by my father, Jared Martinez CEO and founder of Market Traders Institute , who to this very day believes that these numbers were sent to him straight from heaven.

But, from that point of enlightenment on, my trading game was changed forever. In a nutshell, Leonardo Fibonacci was a mathematical genius and author who lived back in the s AD. He noticed a natural numerical rhythm that occurred in various places of the world.

How it works, is that the sum of the previous two numbers in a sequence will always equal the next number in the sequence. Take the chart below for instance:. In the chart, we can see how the flow of the numbers never ends. When you begin to divide and find the square root of the Fibonacci ratios you will begin to see important numbers that represent market levels, which could be used to identify market retracement and extension levels.

The Fibonacci sequence numbers are used to predict the wave movement of the market. For instance, when the market establishes a low followed by a proper high,the low will represent the zero percent level and the high will represent the complete percent level.

Because the market moves in waves, traders would then set expectations that the market will pull back and form a low higher than the zero percent mark.

Depending on the market price level of that low,using the Fibonacci sequence, traders can then predict where the corresponding high will form.

See the image below for one example.

Can You Use Fibonacci As A Leading Indicator?

If the market retraces to the. This represents percent of the combined low to high or zero percent to the full percent of the previous movement. Now, some charting software platforms that are out there simply show these levels and traders must memorize which levels work as pairs or, in otherwords, which low point level and high point level correspond to one another. You can use this knowledge through your platform as well. From our studies, the market follows the Fibonacci sequence pretty much to the pip.

When the market hits these crucial levels, that is where decisions are made and we look to enter in either a buying or selling position with eyes to the corresponding market level as is identified through the Fibonacci sequence.

To learn more about the Fibonacci sequence and how you can apply it to your charts and trades, click here: Just, MTI in general, what I think I've learned the most is really understanding the Fibonacci sequence. It's probably been the biggest light bulb for me in terms of changing the way I trade. Taking comfort in knowing that you have a safety zone to put your stop loss, which is probably the scariest thing for somebody just getting started that only risks pips when the market can move hundreds of pips.

So to understand why the market moves the way that it does, the Fibonacci sequence helps so much.

MTI's strategy on Fibonaccis is far more thorough than anything I've ever seen in terms of other workshops or what have you. Selecting a broker can be tedious, that is why we have spent the time in comparing and examining the most popular and reputable brokers.

Fibonacci Trading in Forex - gedyfej.web.fc2.com

Combined with the research and variable platforms that are important in selecting a broker that best fits you. We have compiled a list of recommended currency brokers! The high degree of leverage can either work for you or against you.

Automatic Fibonacci Forex Indicator Software

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