2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Many people familiar with "Forex" or other markets (stock, resource) have an idea about various strategies, as well as technical and fundamental analysis. There are a huge variety of them, from the simplest signals to the most complex systems consisting of many interacting indicators and oscillators.
What is this?
The described tool is one of the ways to carry out technical analysis, however, it is very specific and requires special knowledge from the trader to carry out transactions. In addition, its use is best combined with other methods of market research, such as multi-frame analysis and trading volume indicators, however, any system for making deals is individual for everyone.
The essence of this tool
Fibonacci time zones are a specific sequence of lines drawn vertically and located at special numerical intervals (ex. 1, 2, 3, 5, 8, …n) and so on ad infinitum, but usually ends in 89 or 144, depending on the parameters set.
When this indicator is applied to the terminal, its mainthe line passes through the smallest or largest point on the graph. Subsequent bands emanate from it with increasing intervals, corresponding to a special mathematical sequence followed by Fibonacci time zones. Then it remains only to analyze the information received.
Fibonacci time zones: how to use?
Before starting to work with this indicator, it is important to find price reversal points and choose the strongest situations on the chart associated with trend changes. After you have found a price change, use the presented tool in the terminal of your broker or on a third-party resource. As a rule, it is called "Fibonacci time zones" (sometimes periods). Next, you should connect the found price reversal points - and you will see areas of potential changes in the future.
However, it should be remembered that these are just possible levels of price behavior, so the lines will not give any guarantee that these changes are mandatory. In addition, you should not trade using only Fibonacci time zones, as this tool does not give a complete picture of the market. But it can be used as a source of information for a certain strategy, using other indicators, such as the relative strength index, moving averages, and many different popular forecasting methods.
The most important thing in this method is the search for the primary interval for entry, as well as the fact that periods give the best resulton large time frames (hourly, 4-hour, daily, weekly charts).
There are other Forex strategies. They are pretty specific. Many of them do not use Fibonacci time zones, but they can be combined, thereby filtering transactions and obtaining additional information about the state of the market. In the case of currency trading, any information is never superfluous.
You should also be aware of the high risk of such operations and use common sense.
Recommended:
Resign or not - how to make a decision if in doubt? How to know when it's time to quit
In the workplace, almost every person spends a considerable part of his life. In view of this, the working regime, wages and other conditions should give satisfaction to the worker. It is this activity that deserves attention. But if every morning the thought arises: “I don’t want to go to work,” then it’s worth analyzing the reasons for this reluctance
Symbols in the time sheet. How to fill out a time sheet (sample)
Working time and its accounting are important components of any organization, allowing you to control the activities of the company and discipline employees. In order to simplify this procedure, a special form was developed - a time sheet
Accounting for working hours in the summary accounting. Summarized accounting of the working time of drivers with a shift schedule. Overtime hours with summarized accounting of working time
The Labor Code provides for work with a summarized accounting of working hours. In practice, not all enterprises use this assumption. As a rule, this is due to certain difficulties in the calculation
Time wages - what is it? Varieties of time wages
Wages calculated depending on the time actually worked is called time wages. This is a form independent of the result of the duties performed. Only a certain period of time is taken into account. Consider the order of its calculation and varieties
Dangerous zones - what is it in production?
Unfortunately, industrial accidents are not uncommon. The most common cause of their occurrence is non-compliance with safety regulations and improper organization of production. Therefore, danger zones are the first thing to pay attention to in order to prevent accidents
