2. how to know indicator Fibonacci Retracement Forex

If you start using the demo account and to predict currency movements then you will find a typical trouble beginners: "I know what has happened today, but what about the next movement? There is no sign whatsoever that I can read because the indicator does not appear a few steps in front of the price but the exactly at the moment the price is

. It is very reasonable because the indikatfor predict price based on previous data alias based on statistical data. So in short, technical indicators using data movement that has happened, put it in the formula and then memproyeksikannya to the fore. Well sounds cool ... But this is also a problem because we all know that what happens in the future is not necessarily the same as what is happening in the present. The strength of rising prices in the future is not necessarily equal to the strength of the price increase in the present. Likewise issues going on.

Well this is the shortage of technical indicators. He just use the past to see the future. Similar to a political analyst or football commentators deh. But we all know that that ball round. Not necessarily the team A win yesterday and then tomorrow could win again against team b.

This deficiency was later solved in several ways. Fundamental analysts use the economic news for mengeliminir these deficiencies and said technical analysis indeed says it is. Well, the technical analyst is not to be outdone. Eventually they use chaos theory and pattern recognition for mengeliminir these deficiencies. Cool right?

The rabbit problem

in the year 1240 Leornardo Pissano Fibonacci discovered a sequence named after the name itself that is the Fibonacci sequence. This series was intended to be used to answer a math question a classic about the rabbits. Just intermezo, rabbit question reads thus:

"a man put a pair of Rabbits in a place surrounded by a wall so that it is isolated by the outside world. How many pairs of rabbits that are generated when a pair of rabbits produce a pair of other rabbit will also be productive in the next and so on? "

Come on, anyone is able to count them? Do I hear anyone replied: "a lot of bu guruuuu ..." Ah it answers the child sitting duck. We will already be in a Running Pig, don't malu-maluin so

ah. Is there another answer?

" The answer is still a pair of bu, because kelincinya are both male. " Duh ... never created a cliché so

dong. Hahaha, I myself also don't ever count them manually. However the Fibonacci successfully solve it by creating a series known as the Fibonacci sequence.

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ...

This is the series that answers the problem of rabbits. So the answer to the rabbit is 144 pairs in sequence to 12. It is obtained from the sum of the two previous series, namely 89 + 56.

Well, lived had apparently lived a series issued this Bonacci family members not only solve the rabbit but into a pattern of modern physics calculations in specialized branches of chaos theory. Chaos Theory is a branch of mathematics and physics also are discussing a random movement pattern is irregular, however. Random because it is never occupies the same coordinate point every time it moves. Irregular because it is always in the same direction. Cotohnya is the movement of the wings on a butterfly. Although irregular, the movement of a butterfly's wings is always the same from time to time i.e. up and down despite never occupy the same point every time you move. That is what is meant by chaos theory. Yes. .. Yes. .. I know this is not very correlated with our forex discussion. From butterflies to bunnies.

Well, that happened on the market more or less are the same. Although it looks irregular in its movement, technical analysts argue basically remains the currency movements have a pattern that can be traced. Then dikeluarkanlah the Fibonacci sequence to extract this price movement. Well this is the cause why Fibonacci finally became the science of technical analysis.

Now let's see the Fibonacci sequence again:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ...

If I were to Un with Un-1 then the result will be like this:

2:1 = 2
3:2 = 1.5
. 5:3 = 1.67
8:5 = 1.0
= 1,625 8 13:21:13
= 1.62
... ... ...
144:89 = 1.62

well, see a golden ratio of 1.62. Then how about we flip? In the same way you will find a another ratio i.e. 0618. Or if you are diligent to divide a specific sequence with another sequence then you will find the ratio-the ratio of other value constant from series to series. The following is the ratio-the ratio used in the use of Fibonacci in forex: 0382, 0500, 0236, 0618, and 0764. Well where did those numbers come from, please look for yourself

hehehe.
Fibonacci Forex

Ok, we got into the essence of the use of Fibonacci. Previously, discussion of the material of our schools this time will only discuss the Fibonacci Retracement only. You need to know that Fibonacci has 4 variants namely 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. Connecting the Swing between "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 is higher on the right and left. While the Swing Low Swing High in the reverse part that is lower than the candle on the right side.

Fibonacci Arc
arc means bow or arch. And indeed the shape of the arc resembling a bow. Fibonacci Arc obtained by pulling a line of virtual extreme point of the two is happening. Lowest prices with the highest price, and then three lines of the arc described by the central values are on the line arc second, third line arc involving the ratio Fibonacci 38.2% level, 50.0% and 38.4%.







On the picture above to see that in point 1, 2, and 3 provide indication of level of support and resistance when prices are moving up and down. Interpretation of the arc involves anticipation towards the level of support and resistance when prices approach the arc. Common techniques used are using a combination of Fibonacci Arc and the Fibonacci Fan line and get the support and resistance of the line the second meeting point. But a meeting point that representative and significant basis for analysis between Fibonacci Arc with the Fibonacci Fan won't be too often can be found. This can be caused by the scale of the graph. Support and resistance resulting from the meeting point between the Fibonacci Arc with the Fibonacci fan is a support and resistance is strong.
Fibonacci Fan
Fibonacci Fan Line obtained by describing the virtual trend lines connecting the lowest prices with the highest price or vice versa. Fibbonacci fan generates three trend lines with a Fibonacci level was at 38.2%, 50% and 38.4%.