Retracement fibonacci forex theory

Elliott Wave Elliott Wave theory states that prices move in waves. Retracement fibonacci forex theory repeats on a macro and micro time frame.

Elliott Wave is based on crowd psychology of booms and busts, rallies and retracements. In the example above, that trade would have failed and the trader would have been stopped out of their long position. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance.

Fibonacci tools utilize special ratios that naturally occur in nature to help predict points of support or resistance. Fibonacci numbers are 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. The main ratio used is . Fibonacci Retracements Arguably the most heavily used Fibonacci tool is the Fibonacci Retracement. To calculate the Fibonacci Retracement levels, a significant low to a significant high should be found. P 500 is a broad measure of human nature, thus the Fibonacci sequence should apply very well.