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We, at CAPEX.com, understand how useful a great Forex Fibonacci strategy can be. A Fibonacci strategy is all about using the Fibonacci levels to enter a low risk trend. Using these Fibonacci retracements, you can anticipate that the trend will bounce up to high profit.
We’ll take a look at how you can use your Fibonacci technology on our CAPEX.com Forex platform to make some profit.
At CAPEX.com, our team focuses on providing a product to you that has plenty of variety. No matter what instrument you are interested in, we will ensure it is available on our site. From the volatile trades like Forex and crypto, to the more stable trades like bonds and commodities, we have it all on CAPEX.com. And, when it comes to Forex, we know a great Forex Fibonacci strategy needs a flexible instrument to go with it.
Your Forex trading strategies don’t need to adapt to our platform, because we provide everything you need. From the popular Forex trades, like EUR/USD, and USD/GBP, to less popular Forex trades, you can easily use your Forex Fibonacci trading across every currency imaginable.
We at CAPEX.com spent countless hours crafting and attaining the best trading software for you to use for your own gain. Our trading platforms, the MetaTrader 5 (MT5) and Capex WebTrader, will come in use in your Forex Fibonacci strategy. We have everything at the touch of a button – from trading signals to instruments, and to a chart that details everything you need to know about a trade.
Adding your Forex Fibonacci levels is simple- simply select the currencies instrument, choose your Forex trade, and then click onto indicators to get your Fibonacci retracements running. Once you have your Forex Fibonacci strategy up and running, our charts will make sure you minimise your risks and maximise your profits.
Fibonacci retracements, as a technical analysis tool, is so successful as an indicator due its roots: the Fibonacci sequence. The Fibonacci sequence is essentially the sum of two previous numbers, and the chain continues on infinitely.
So, the Fibonacci sequence starts as 0,0,1,1,2,3,5, and so on. Every number in this series is linked through ratios, and determines what we call ‘retracement levels’. These are essentially minor changes in the direction of a trend.
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We, at CAPEX.com, pride ourselves on our ability to help traders. We have a great variety of resources available on our website for you to perfect your Forex Fibonacci trading strategy. Want to check out the latest news on what Forex currencies have hit a trend? Check out our market news page. Want to get a better idea of the subtleties of a Forex Fibonacci trading strategy? Head on over to our CAPEX Academy. We do the research for you, so you can focus on what’s important: your Forex Fibonacci trading strategy.
There are three different ratios used to determine retracement levels for your Forex Fibonacci trading strategy. The 61.8% ratio, the 38.2% ratio and the 23.6% ratio. Each of these ratios are critical in determining if a market is about to drop, or if a trend is about to change. The reason they’re called ‘retracements’ is because analysis usually shows that certain patterns and trends in a trade will repeat themselves.
These three ratios are usually used as predictors that a certain trend change will happen, for example, that Forex on CAPEX.com will eventually drop and rise again.
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A pullback is when there is a momentary lull or drop in a trades trend. This strategy works perfectly for a Forex Fibonacci trading strategy, as Forex Fibonacci levels are always halting or dropping. So, first of all, identify a strong Forex trend. This is a trend that has consistent highs, with a pullback rate of under 50%. After viewing the trade for a while, study how the trade moves around the 38.2% retracement level. Once it starts to drop off, enter the trade. All you have to do now is hold your position, and use the previous highs as an indicator as to when to leave the trade with maximised profit. Our Capex.com platform is as smooth as can be, so as soon as you hit that level, and there’s a drop off, you’ll be able to enter automatically – or, manually, if you value that control.
Breakout trades are when you enter a trade that is rapidly rising outside of support or resistance levels. These are highly risky trades to deal with, and have the highest failure rates out of all online trading strategies. But, with the right Forex Fibonacci levels and our reliable CAPEX.com stop losses, this is a trade that can easily work for Fibonacci retracements. In order to get the most out of a breakout trade, we’d recommend you enter the trade at the very start of its volatility. Once there, Fibonacci extension levels are your friend. Use the addons to know when to clear the trade – when it has cleared 100% retracement – and once that is done, you just have to make sure it reaches the breakout level, and leave quickly. But, make sure it has not retracted more than 38.2% of the previous swing. This could lead to a disastrous loss.
A MACDs function is that it shows the relationship between two moving averages of a trade’s price. It works well with a Forex Fibonacci trading strategy, because an MACD can locate entry and exit points while the Fibonacci retracements locate the shifts in the trends position. When you match up a bullish MACD indicator with a Forex Fibonacci trading strategy on any Forex trade, the MACD will locate the best points to enter the trade right as certain Fibonacci retracements are just about to rise. Conversely, if you match up a bearish MACD indicator with a Forex Fibonacci trading strategy, the MACD will locate the best points to close a trade right when Fibonacci retracements are about to plummet. Ultimately, using other tools and indicators is smart, and we have plenty of indicators available on our CAPEX.com trading platform. A MACD will align perfectly with your Forex Fibonacci trading strategy.
All in all, a Forex Fibonacci trading strategy can definitely yield you some great results focusing on a volatile market like Forex. There is no indicator more accurate than determining when a price will suddenly shift trends, and implementing its system can be easy to do once you have an understanding of the Fibonacci sequence. You also have free reign to use other indicators with your Fibonacci retracements, as well as maximising profit by using it during breakout and pullback trades. It’s such a versatile instrument, that if you sign up to CAPEX.com now and implement it, you’ll see profit.