Forex Trading Guide - Forex Trading Contest Section

Main Forex Trading Contest sponsors

 

 

Welcome to Forex Trading Guide

Article

What's the .382 Fibonacci Ratio in Forex Trading?
Adrian Pablo

It was mentioned in a past article that Fibonacci forex trading is the basis of many forex trading systems used around the world by profitable forex traders. These systems are all based on the famous Fibonacci ratios (.236, .50, .382, .618, etc.) and each of them can specialize in a particular ratio along with other minor indicators in order to make the pinpointing of the entry and exit levels as accurate and profitable as possible.

One of the widely used Fibonacci ratios is the 0.382 ratio. As it can be easily seen on any forex chart, currency prices are continually changing and they follow an oscillatory pattern with peaks and valleys. The limit of the peak is usually called a resistance level while the valley is usually called a support.

In order to find the 0.382 ratio level what you do is, first; measure the size of the drop or rise over your time of interest. Once you have that value you multiply this by 0.382. Now depending on what you are looking at, a rise or a drop on the price of the particular "currency pair" you are trading, you will add the last value you calculated to the total drop or subtract the value from the total rise.

These operations will give you the 0.382 Fibonacci ratio level, either for a rise or a drop on the chart you are analyzing. Once you have the value you can then start planning the strategy you will follow in order to make a high probability profit from this valuable information. For the 0.382 ratio level calculated for a recent rise in the "currency pair" exchange price, your calculated level will be a highly probable support and for the case of a level calculated for a recent drop of the prices your level will be a highly probable resistance.

Knowing this ahead of the market and having the proper secondary indicators, will give you a huge advantage over most forex traders, and that's something any trader would like they could count on. That's why Fibonacci trading is so widely accepted over the world, and of course, why it's so profitable and successful.

Free chapters of a forex day trading system can be downloaded at http://www.1-forex.com in case you are interested in learning more about Fibonacci forex trading.
About the Author

Adrian Pablo; Forex trader and freelance writer.

>> http://www.1-forex.com

Forex Trading Contest News

forex trading contest

Ozawa filed his candidacy earlier in the day for the DPJ presidential contest to vie with Mr. Kan, who is also incumbent leader of the party. Even if Mr. Ozawa loses, there is speculation he might be given a key post ...

Japan's Ozawa Pledges Forex Intervention - Wall Street Journal

FXCM Micro’s monthly currency trading contest ... way to get started in the forex market. FXCM Micro is offered for individual, self-traded accounts. All participants of the King of the Micro contest can receive ...

Join the FXCM King of the Micro Contest - FXStreet.com

is challenging Prime Minister Naoto Kan at a party leadership contest Sept. 14. Central banks ... chief analyst in Tokyo at FOREX.com Japan Co., a unit of the online currency trading firm Gain Capital in Bedminster,

Dollar, Yen Decline as U.S. Job Gains Boost Appetite for Risk - BusinessWeek

is challenging Prime Minister Naoto Kan at a party leadership contest on Sept. 14 ... chief analyst in Tokyo at FOREX.com Japan Co., a unit of the online currency trading firm Gain Capital in Bedminster, New Jersey. “

Dollar Heads for Weekly Loss Versus Euro, Yen Before Jobs Data - BusinessWeek

What is needed is a fundamental catalyst to either confirm or contest ... DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a ...

Can NFPs Provide a Clear Bearing on Risk Appetite Where Volatility Alone Fails? - DailyFx

Parliamentary question time is very much like being on a trading floor," he says ... selected as a National Party candidate only after a bruising intraparty contest. He faced New Zealand voters for the first time ...

NZ's Key: The ever-cheerful smiling assassin - Sydney Morning Herald

Parliamentary question time is very much like being on a trading floor," he says ... selected as a National Party candidate only after a bruising intraparty contest. He faced New Zealand voters for the first time ...

'Smiling assassin' targets rich immigrants - New Zealand Herald