Introduction To Fibonacci Forex Trading

How to make money in Foreign Currencies using Fibonacci Retracements and Fibonacci Profit Targets

Fibonacci forex trading is the basis of many successful forex traders systems that are used by a great amount of forex traders around the globe. Forex trading systems based on this “numbers sequence” are so successful that billions of dollars are earned every year by forex traders following its rules.

Fibonacci was and Italian mathematician an he is best known by his world famous Fibonacci sequence, definition of this sequence is that it’s was formed by a series of numbers which each number is the sum of the two preceding numbers; 1, 1, 2, 3, 5, 8, 13 ...Though these cases of currency trading what is more important for the forex trader is the Fibonacci ratios derived from this sequence of numbers, i.e. .236, .50, .382, .618, etc.

Forex day traders can really benefit from his mathematical proportions due to the fact that the oscillations observed in forex charts, Some prices are visibly changing its pattern, Follow Fibonacci ratios very closely as indicators of resistance and support levels.

One very important thing to remember is Fibonacci analysis is a leading indicator. What this means to you is that by learning the correct Fibonacci trading tactics and techniques you will know how to determine the most probable turning points in the market before the price gets there. Yes, you can know what the forex market will do in advance!