07-29-2006, 11:47 AM
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#2 (permalink) |
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Piggy Bank
Join Date: Jul 2006
Posts: 55
Rep Power: 3
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In simple terms you would talk about fibs in particular regard to Fibonacci lines drawn on a chart. These simply give guidance on how much a price is retracing after a period of movement, and the link in the first reply will give you some guidance.
When people on this forum talk about fibs they can be refering to two of the most popular trading methods shown here. They are the Knife and the Vegas methods. So you need to keep this in mind and try and determine which is which. Basically the two methods mentioned above have Fibonacci profit and reversal points plotted at set Fibonacci numbers from a point of entry or the point in time that a Moving Average has reached before a trade is signalled. Typically it might be that for GBPUSD a trade taken at 1.8500 has its first Take Profit at 1.8555 (55 being a Fibonacci number) I hope this helps. |
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