beginner fibonacci tecnicals

7/31/2019 Beginner Fibonacci Tecnicals

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Fibonacci Technical Analysis:

An Introduction

Ilya Spivak and John Rivera

Currency Analysts

DailyFX


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Risk DisclaimerLeveraged foreign exchange and options trading carries a significant level of risk,

and may not be suitable for all investors. The high degree of leverage can work

against you as well as for you. Before deciding to invest in foreign exchange youshould carefully consider your investment objectives, level of experience, and risk

appetite. You should be aware of all the risks associated with foreign exchange and

option trading, and seek advice from an independent financial advisor if you have

.

time without notice.

There is no guarantee that the systems, trading techniques, trading methods,

indicators or other information presented at this seminar will result in profits or

not result in losses. The content is provided for informational purposes only and is

not intended as a trading recommendation.


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Intro to Fibonacci Analysis

I. Origins of Fibonacci

II. Fibonacci Numbers in Technical Analysis

III. Applying Fibonacci Long Term Perspective

IV. Applying Fibonacci Short Term Perspective


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Named after Italian mathematician Leonardo of Pisa,

nicknamed Fibonacci (meaning Son of Bonaccio)

Introduced to Western Europe in Liber Abaci (1202)

Origin of Fibonacci Numbers

Previously Described in Indian Mathematics

Sanskrit Prosody: Syllables Long -2, Short-1


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Fibonacci Numbers: 0,1,1,2,3,5,8,13,21,34,55,89,144

Divisibility Sequence

Number in the Series = 1.618 x Previous Number

The Fibonacci Number Sequence

23.6% (3), 38.2% (2), 61.8% (1)

50.0%: Not a Fibonacci Number but Added for Significance


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Branching in Trees

Fruitlets in a Pineapple

Arrangement of a Pine Cone

Fibonacci in NatureFibonacci in Nature

Sunflower Florets


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= (1+5)/2 1.6180339887

61.8%

Like every number sequence defined

The Golden Ratio

by linear recurrence, Fibonaccinumbers have a closed-form solution.


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Markets Dont Move in Straight Lines

Source: FX Trek IntelliChart


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Why Do Markets Retrace?Point A: Start of Initial Advance Price begins to rise as buyers enter the market

Gains encourage new buyers, pushing prices higher

Point B: Pullback/Correction Begins Supply meets Demand

Price too expensive to attract new buyers

Market turns sensitive to counter-trend events

Point C: Advance Resumes Lower price brings in new buyers

Bulls that booked profits re-enter trade



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Enter: Fibonacci

In TRENDING markets, the Fibonacci number sequence

can be used to help forecast the likely depth of acounter-trend retracement, hinting where a correction

may end and the dominant trend resume.


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Using Fibonacci 2 Step Process

Step 1 :

Identify the START and

END of a single move in



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Using Fibonacci 2 Step ProcessStep 2 :

Draw Fibonacci trend line

from the START of the


,

direction of the trend.


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Fibonacci Across Time Frames


NZD/USD - Weekly


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Fibonacci Across Time FramesInitial

Advance


NZD/USD - Weekly


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NZD/USD - Weekly

.

Retracement


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NZD/USD - Weekly

Resumes


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GBP/USD - Monthly


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Fibonacci Across Time FramesInitial

Advance


GBP/USD - Monthly


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GBP/USD - Monthly

38.2%

Retracement


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Uptrend

Resumes


GBP/USD - Monthly


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.

Retracement4

GBP/USD 5 MinSource: FX Trek IntelliChart


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Fibonacci Levels As Targets

GBP/USD - DailySource: FX Trek IntelliChart

Break of Support Leads

To Accelerated Losses


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Fibonacci Levels As Targets

Solid S/R Lines Can Be

Targeted For Scalping

Opportunities

Source: FX Trek IntelliChart Source: FX Trek IntelliChart


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Questions?

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