Welcome to currency trading
Currency Trading Software Review Article
This is a selection made from among articles on Currency Trading Software Review. For a permanent link to this article, or to bookmark it for future reading, click here.
Fibonacci Chart For Forex Trading
from:The Fibonacci chart method of forex or other financial trading depends on a mathematical progression invented by Leonardo Fibonacci of Pisa, Italy, in the 13th century. He discovered that if you create a series of numbers by always adding the last two numbers together, i.e. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34 etc, the ratios between the numbers follow certain interesting patterns which are often reflected in the physical world. For example if you take a leaf and calculate the ratio between its width and its length, you will often find one of Fibonacci's ratios. Why this should be true in so many cases is one of the mysteries of the natural world.
But on a practical level, to get back to forex trading, these Fibonacci ratios are also often seen in oscillatory movements which includes price movements. The most important ratios for currency trading are 0.236, 0.382, 0.500 and 0.618. These can be used to predict certain price movements, particularly retracements or reversals within a trend.
You will know that whenever you have a strong trend with movement in one particular direction over a period of time, during that time there will be moments when the price reverses for a short retracement before continuing on its way in the direction of the trend. Retracement lines can therefore be drawn which can act as support and resistance levels.
In many cases the oscillation or fluctuation visible in a forex chart will reflect almost exactly one of the ratios discovered by Fibonacci. If you watch and measure these for a while using the Fibonacci chart principles you will be amazed how often this is true.
It is also possible to use extension lines using Fibonacci ratios to predict how far a movement will go before a reversal. If you can do this accurately it enables you to take the maximum profit from a trend. You can imagine how valuable that is.
For this reason there are many systems based around the Fibonacci chart method of technical analysis. The first thing to say about them is do not be too concerned about the math at first. It's a fascinating subject and most systems will at least attempt to explain it, but you do not actually need to know why this works in the beginning. Just follow the system and you will find it is not so complicated.
In fact, because these ratios appear so often in nature and in our own lives, systems based on them can often seem intuitive. Take care not to be fooled into thinking the system is based around intuition, however. That is not true at all. You will still need to apply all the usual cautions and be consistent in your application of the system when you are using Fibonacci chart methods for financial trading.
Currency Trading Software Review News
PRECIOUS METALS - European Opening View - Debt/banking jitters boost safe-haven demand for gold and silver
London, 08 September 2010 - Gold and silver pushed to fresh highs Tuesday as renewed concerns over the health of the EU banking system and sovereign debt sparked fresh safe-haven demand from investors.
Read more...PRECIOUS METALS - European Opening View - Gold & silver poised to rally as EU debt/bank concerns resurface
London, 07 September 2010 - Follow through reaction to Friday’s payrolls reading helped underpin risk appetite yesterday with equity markets in Asia and Europe closing modestly higher.
Read more...Final Results
Greener House Investments plc ("GHI" or the "Company") Final results for the year ended 31 May 2010 Greener House Investments plc (PLUS: GHIP) announces its final results for the year ended 31 May 2010. The Company reports a loss for the year of £31,962 (2009, £21,383). Jonathan Metliss, Chairman, commented, "Following the announcement on 29 March 2010 that the Company had acquired a 20 ...
Read more...Kofax Announces Preliminary Results for Its Financial Year Ended June 30, 2010
IRVINE, Calif.--(BUSINESS WIRE)--Kofax plc (LSE: KFX), the leading provider of document driven business process automation solutions, today announced its preliminary unaudited results for its financial year ended June 30, 2010. The Company’s results are consistent with the trading update issued on July 26, 2010. Kofax showed significant progress in its software business, with sales execution ...
Read more...Weekend news and share tips
■ Conveyor belt maker Fenner 's results for 2010 will be at the top end of forecasts after strong demand from the coal mine industry. ■ British Airways has drawn up a list of 12 potential acquisition targets once its merger with Spanish carrier Iberia is completed, chief executive Willie Walsh said over the weekend.
Read more...