Mindful of the above, Fibonacci ratios can be analyzed in three different ways:
1. Analysis of retrogression
2. Line Speed
3. Arcos
Reversals are defined as the price of the new outline, to set prices static or operational areas.
The only thing necessary is to isolate the movement from beginning to end, which detects a pattern of reversal, to draw the line in question, and if used as a tool of operations, placing market orders once the price reached each ratio in the opposite direction to the main rally, which equates to operate against trend, using rebounds.
The lines of speed, however, are those that give us support and resistance dynamics, since it extends diagonally forward in graphics, establishing projections. This serves as a guide to the price movement.
The support lines and resistance dynamics, as well, because as the price goes along, its roof or floor will be changing, and their points of rupture are those that take such as resistors or media.
Arches, as they provide the ability to measure the seasonal cycles, such as arches, placed on the time scale, allow the design movements. The decrease in this case is given when the price of a touch arcs.
To use, you must draw a vertical line corresponding periods in the series. This is a place in periods of 5, 8, 13, 21, 34, 55, 8, and so on. When these lines touching the lines of the arches forecast will be a decline.
In this way, not only will the identification of supports and resistances, but also what is the estimated time it takes the price to reach them.
Here, then, some practical examples of using the Fibonacci ratios.
In the first case, since as we will see an upward rally in the pair EUR / USD, there are setbacks, which are slowing in the first 50% (38.2% was not used here first, but served as a resistance to rebound at 50%), then 61.8% and then 76.4%. Since there was a very significant rebound, with resistance at 61.8, 50 and 38.2%.
In the following example, we see how we can use Fibonacci tool direct operation.
There is a rupture of an upward trend line, as in the rally, and a candle close below 38.2%. The price goes directly to 50%, where we have opportunity to operate. In the 50% we have another opportunity, in this case upward, with 38.2% in the target again.
As we can see from the example that follows, macroeconomic reports, even those who give more movement to the market, do not change the importance of Fibonacci ratios.
The figure below shows a report issued in United States, the non-farm payroll employment, and corrections in prices tend to go to the next ratio, in this case the top.
Fibonacci tool is extremely useful for operating on forex, and completely combined with indicators, which will be used according to the market trend, and the operational plan of each operator.
Its use is basic and very important in large graphs, as in small graphs, where a half rally, a reversal occurs.
Finally, let's look at the example of the pair EUR / USD monthly chart, where 1.1630 is the 38.2% rally from 0.8342 / 1.3669, and the price tends to move closer to him ( Tuesday, November 15, for example, reached only 10 points in the same).
