Complex trading system #5 (Fibonacci trading)
Submitted by Edward Revy on June 30, 2007 - 13:27.
Traders were asking to post some strategies that will work on smaller time frames.
Here is one very nice trading system that can be worth your attention.
When a trader chooses to use small time frames (like 10 min, 15 min, 30 min even 1 hour) risks to be wrong are always higher than with larger time frames.
Therefore, it is very important to have a really good Forex trading system that can advise on entries with high chances to win and what's more important it should be able to tell exactly where to exit without need to constantly monitor the price.
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To set up Fibonacci you need to find swings High and Low - AB on the picture above. Then you drag your Fibonacci tool, found on your trading platform, from A to B and get retracement and extension levels.
Level 0.382 indicates 38.2% retracement from point B where AB swing = 100%.
Level 0.618 indicates 61.8% retracement from point B.
Extension level of 1.618 stands for total of 161.8% progress starting from point A.
Try this website to learn more about Fibonacci trading.
Regards,
Edward
how to setup fibonachi ? in the picture .618 is higher than .382 and also 1.618 lower than .382 ?
WMA stands for Weighted Moving Average.
The Weighted moving average is calculated by averaging the current value and the previous values over the given period together.
Regards,
Edward.
what is a WMA , i am only familiar with SMA ( simple moving average and exponential moving
averages EMA
Thanks
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