Thursday 26 May 2011

Fx7screens Professional Forex Trade

Fx7screens Professional Forex TradeFX7 Screens PROFESSIONAL TRADE


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If You Are a Fibonacci Fan...
The three most common fibonacci retracement levels are 38.2%, 50%, and 61.8% of the primary trend and most basic stock charting applications will use these as standard levels. These fibonacci retracement levels act almost as magnets once the countertrend rally takes place. These are very common, however, there are a few other fibonacci levels that can provide resistance. These are the 75%, 78.6%, 87.5%, and 88.7% retracement levels. The common rule of thumb is that when the 50% retracement level is taken out, the four levels I just mentioned become magnets to attract price.

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ibonacci fans are created by first drawing a trendline through two points (usually the high and low in a given period), and then by dividing the vertical distance between the two points by the key Fibonacci ratios of 38.2%, 50% and 61.8%. The result of these divisions each represent a point within the vertical distance. The three 'fan' lines are then created by drawing a line from the leftmost point to each of the three representing a Fibonacci ratio.

Fibonacci Fan represents price future support and resistance levels.

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Regular divergence describes a price trend change that will probably happen in the future, albeit shortly. On the other hand, hidden divergence is a confirming indicator of past price direction.

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