Pier 3 Condo

The Italian mathematician was Fibonacci. The Fibonacci numbers is the numbers which is named after him. In this sequence the numbers start with 0 and 1 , and the next number is the sum of the previous numbers. And the sequence is of the form 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377,610 etc. Each number is the addition of the previous two numbers.

While moving forward with the larger numbers in the sequence, the division of the two closer consecutive numbers results in the golden ratio. And this golden ratio’s where used by trading stocks , they produce primary and secondary results. Onward direction refers in the primary result and opposite direction refers the secondary result.

In primary trend,the most common Fibonacci retracement levels are 38.2%,50%,61.8%.These standard levels are used by most basic stock charting applications.These Fibonacci retracement levels act almost as magnets once the countertrend rally takes place.Apart from above three there are few other levels that can provide resistance.These are 75%, 78.6%, 87.5%, and 88.7% retracement levels.

The thumb rule mentions that the retracement levels show about 50%, and the previously mentioned levels attracts the price by behaving like magnets. The price must be said by the persons who are familiar on those levels. Always the prices do not remain in the steady state. Stocks, futures, forex,all instruments which are liquid,will often oscilate in Fibonacci proportions.

Fibonacci ratios may be applied to the Price scale,and also to the time scale of charts.Many traders use Fibonacci ratios with a few simple indicators that can help them to determine probable price turning points,optimum entry,exit and stop-loss levels.

Then use price reversal pattern recognition after identifying the primary trend, to coincide with the fibonacci retracement level to acknowledge that the counter trend move has been over. Then to know the actual lows and double bottom or break through that level look for stocks.

In “forex trading”,the trader must be aware of the international markets as there can be “risk arbitrage” in the market situations.The trader can use “forex signal trading”for the assistance. In Forex trading,the currency of one nation is traded for that of another.So one needs to be fully aware of the market situations in order to be “forex trading”.

For beginner traders it might be too complex for using the applications of Fibonacci towards trading and takes time to make him perfect. These Fibonacci retracement levels are being used by many beginning traders. And it is also used by the advanced traders also to become a self-fulfilling prophecy.