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Grid Fibonacci Forex trading - markings on the chart
The sequence of Fibonacci numbers is found in many Forex strategies and patterns of technical analysis so every trader should be able to build and use the same level. To save readers time that is usually spent on training books, today I will try to be brief but describe in detail the marking process of the grid of Fibonacci in MetaTrader.
Given the fact that this article is targeted at newbies, we should say a few words about the origin of Fibo levels and their role in Forex.
It all started back in the 12th century, when the medieval Italian mathematician Leonardo Fibonacci noticed a very interesting regularity in a sequence where each new member is equal to the sum of the previous two, the ratio of the value of N (N-1) tends to the "Golden number" Phi (1,618) (more).
Table with calculations of Fibonacci numbers
Actually, to be honest, Fibonacci discovered only a special case of this pattern, as it is found not only in mathematics, where you can "juggle figures" but also in biology, for example, the proportions of the average human body is also subject to the law of the Golden section:
The famous Fibonacci ratio
Over time, the sequence Leonardo found application in various sectors and spheres of activity, and in the 20th century and got traders who tried to build a Fibonacci grid on the chart.
Not to say that the result was shocking, but the quotes do by order fought off such straps, so to date, already developed a set of specific rules governing the construction and interpretation of Fibo levels.
How to lay out the Fibonacci grid
In any modern terminal data levels are included in the standard set of technical analysis tools, is no exception to this rule and the MetaTrader platform. In the terminal menu has a special button, clicking on which, the trader will be able to add to the graph the Fibonacci grid:
Select the Fibonacci retracement grid
Immediately after that, the cursor changes cruciform shape with horizontal stripes. This means that the command is active, so the algorithm further action will consist of two stages.
First you have to decide the starting point of the build, as a rule, this is the maximum extremum of the bearish trend or the low of a bullish trend:
How to apply the Fibonacci grid on the chart
Then press the left mouse button and holding it move the mouse left to right to the point of completion trends:
The grid on the chart and determine the trend
By the way, about the extremum, today traders choose one of the two ways of plotting the Fibonacci retracement grid:
for maximum and minimum prices of candles (the shadows);
the closing prices of the bars.
What method to use – everyone decides for himself, but in the literature I often heard the opinion that true is the first approach, so I prefer to use this technique.
I recommend to pay attention to these reviews:
Fibonacci Fan
The Fibonacci Channel
Configuring Fibonacci grid Forex
If more time to pay attention to the markup above, we can see six levels denoted by marks: 0; 23,6; 38,2; 50; 61,8 100.
These values are measured in percentage and included in the classic set, which is more than enough for most trading strategies. However, sometimes there is a need to build additional level. This can be done in the following way:
two times press left mouse button on the constructed grid;
click the right mouse button and in the opened context menu select "Fibo properties":
Mesh properties of Fibonacci in MetaTrader 4
Before our eyes, a window opens with settings for the selected object where you want to go to the section "Fibonacci":
How to set grid in the terminal
It is not difficult to guess from the interface, to configure additional knee Fibonacci grid you need to click on the "Add" button. Immediately after activating this command, the program automatically scrolls a list of levels in the end and will offer to set the parameters of the new planks:
Fibonacci levels in the trading terminal
You can see that the basic algorithm of actions in their essence, so many newbies all turns out, even without instructions, that is intuitive.
But about another feature of the Fibonacci grid with MetaTrader has just not guess, moreover, not even all experienced traders know about it. The fact that along with the interest symbol of level, you can enable the display of the quotation on which it was built. To better understand what was going on, here is an example:
How to change the layout on the chart
To resolve this problem is rather in the line of the description (where we indicate the percentage value) using the space bar to add the symbols %$:
Specify values of grid levels
This method of display levels is very convenient, because prices play an important role in the decision-making process about buying and selling pair, plus notation of quotations greatly simplifies the algorithm setting take profit and stop loss.
In principle, this description of the Fibonacci grid can be finished, as characteristic of specific levels is beyond the scope of today's topic. And objectively speaking, that some definite rules in the interpretation of a particular strap does not exist, because each trading strategy, the authors themselves indicate which signals work better.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 346
| Rating: 0.0/0 |
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