Advantage over most traders: Fibonacci coefficient .382
-Fibonacci trading forms the basis of many e-trading systems used by successful traders around the world. All such systems are based on the famous Fibonacci coefficients (.236, .50, .382, .618, etc.) and each specializes in a particular coefficient as well as other additional indicators to determine entry and exit levels with the highest possible accuracy.
One of the most popular Fibonacci coefficients is 0.382. As you can see from any chart, currency prices are constantly changing and following an oscillatory pattern with peaks and troughs. The limit of the peak is usually called a resistance level and the troughs are called support.
In order to find the 0.382 ratio level, you must first measure the size of the fall or rise for the time period you are interested in. Once you get that size, multiply it by 0.382. Now, depending on what you are looking for, a rise or fall in the price of the particular currency pair you are working with, add the last value you get to the total fall or subtract that value from the total rise.
These operations will give you a Fibonacci coefficient level of 0.382, for up or down on the chart you are analyzing. Once you get the value, you can start planning the strategy you will follow to make more profits with this valuable information. For the level of the coefficient 0.382, calculated for the last increase in the exchange rate of the currency pair your level will, with a higher probability, support levelThe level calculated for the last price drop, your level will more than likely be the level of the last price drop, resistance level.
If you know this in advance and have the appropriate secondary indicators, it will give you a huge advantage over most traders, any trader would like to have this information at their disposal. This is why Fibonacci trading is so widespread around the world, and certainly profitable and successful.