Fibonacci Trading Strategy – Make Money Trading Currencies With This Simple Strategy
What is the Fibonacci trading strategy? It is a simple yet powerful way to make money in the Forex market and it does not require any complicated technical analysis or any type of knowledge about the Forex market. The Fibonacci […]
What is the Fibonacci trading strategy? It is a simple yet powerful way to make money in the Forex market and it does not require any complicated technical analysis or any type of knowledge about the Forex market.
The Fibonacci method of trading was actually discovered in 1582 by a monk named Francesco Fibonacci, who was the first person to discover that there is a certain ratio that results in doubling of the amount of money that you are willing to invest and loses when you put your money in. You could say it is a very simple strategy and it is one of the oldest methods to trade in the currency markets. In fact, it has been around longer than most of the other strategies in the currency markets.
In its simplest form, the Fibonacci trading strategy works like this: You place a trade when the price of the currency pairs you are trading is at the peak of the Fibonacci level. When the price falls back down again, you sell the currency pair and then buy another pair. When the price peaks again, you buy the currency pair and wait for the price to fall again.
There are many traders who have gone from the beginner to the experienced Forex trader after learning how to use this trading method. This method of trading is actually quite effective in the Forex market because, although it has been around since almost a thousand years, it still stands true today. This means that many beginners find the trading method quite easy to use and there is no reason why you should not try it out if you want to make some money in the Forex market.
Although it is the most famous trading strategy in the Forex market, the Fibonacci trading strategy does not have anything to do with the Chinese Feng Shui technique. Even though there is a very popular Chinese Feng Shui technique that has been used by traders in the past, the actualForex trading method is quite different.
The Fibonacci trading strategy is designed to allow a trader to trade in currency pairs which have a minimum of two currencies and a maximum of three currencies. This means that if you are able to combine pairs with more than three currencies, you can double your profits and triple your losses because you will be putting money in pairs that have a minimum of three currencies.
There are several ways that you can use the Fibonacci trading strategy to make money in the Forex market. You can trade in pairs that have only two currencies and use the method to trade in pairs that have a minimum of two currencies. If you use this method to trade in pairs that have more than two currencies, you can expect to see more gains as you will be putting money in pairs that have a minimum of two currencies.
Some traders prefer to use the Fibonacci trading strategy to trade in pairs that have a minimum of two currencies. In fact, even if you are not a veteran in the Forex market, you could start using this method as soon as you get used to the Forex market and you will be surprised with the amount of money you can make trading currencies.