Fibonacci Retracement

OK, we get to the essence of Fibonacci. Previously, discussion of the matter in our schools this time will only discuss the Fibonacci Retracement only. You need to know that Fibonacci has four variants that Fibonacci Retracement, Arc, Fan and Expansion.

Fibonacci is useful for determining the point of support and ressistance of price movement. Its use is quite simple. Live link between "Swing High" with "Swing Low" price. O Yes, before you need to know whether the Swing High Swing Low and it.

Swing High is a candlestick that lies between candlestick-candlestick higher on the right and left. While the Swing Low Swing High is the opposite in the lower part of the candle on the right than the left. For more details, see the following picture:

Well, in the use of Fibonacci Retracement, you simply connect the dots with lines both Fibonacci then automatically the price Support and Ressistance will form there. Very easy is not it? Subject pengeplotannya, don't worry, almost all of the charting software already has complete facilities for the procurement of Fibonacci. Unfortunately for Netdania doesn't support the Fibonacci Retracement lines up to 5 numbers but only three that just 0.382, 0.5, and 0.618. The rest is 0.236 0.764 and not shown. So this time we'll use the charting of Forex.com.

Consider the following image:

 

Well, the chart above is a picture of GBPUSD with the timeframe of 1 h. Fibonacci line green from 0.0 and 1.0 is the result both of the connection point of the Swing High Swing Low with. Notice the retracement line mampun with both identify areas of support and ressistance of prices. Well, to this retracement line five useful as a point of support and the ressistance. If current prices are among the lines of 0.0 and 0.362 then 0.362 line, 0.5, and 1.0 is the limitation 0.613 ressistance and 0.0 is the restriction support.

Well as simple as that. How to price when approaching a subject area support and ressistancenya, it seems like it doesn't need to be explained again (shame ah been great still learning so...). Art in Fibonacci is how to determine the Swing High Swing Low and precise so as to produce soup and the Res pas. Here there are no lessons can be given. You need the experience of trial and error to specify one. The more you use it frequently, it will increasingly be proficient in the future.