The Fibonacci Ratios in Forex Trading
The most frequently used Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Traders use these levels to identify possible pullbacks in trending markets and to find entry points aligned with the overall trend. The ratios are used to read and measure many levels. Traders also use what are known as Fibonacci extensions, which are able to forecast where a price might go after breaking out of a range or completing a retracement.
The beauty of Fibonacci trading lies in its ability to reveal hidden levels of support and resistance that might not be obvious from basic chart analysis. These levels often align with psychological price zones, previous highs or lows, or trendlines—adding further validity.
However, Fibonacci levels are not guarantees. They represent potential zones of interest, not exact reversal points. That’s why most traders will use the Fibonacci ratios along with other Forex analysis tools to double-check for confirmation.
In this course, you will learn all about the Fibonacci ratios and levels, you will learn how to read the ratios, and how to apply them to the market. The Fibonacci sequences and ratios have been used for many years in Forex trading, and they have helped traders to great financial success. Their mathematical exactness can help you too.
The Fibonacci “Golden Ratio”
In this course, you will learn about the history of Fibonacci’s ratios and how they have been incorporated into Forex trading. You will find out how you can benefit from their uses. You will also learn about how to use them in conjunction with other trading analysis tools such as candlestick patterns. You’ll discover what Fibonacci’s “golden ratio” is and also the golden mean, and how they are all linked to the Forex market. You will also find out what the potential reversal points are in the market and how you can use this to higher your success. All of this and more as you continue your journey through Forex analysis.
