Intro to fibonacci analysis

This is the first section of a new course we are releasing next month on Fibonacci analysis. Feel free to provide feedback . What you will learn: - Prices frequently move relative to Fibonacci levels - Fibonacci levels can be moved as the trend continues to grow - Fibonacci levels are anchored to price extremes - Support and resistance can be defined as a price range Fibonacci analysis is a way to forecast levels of support and resistance and project price targets. It can be used to set stops as well as timing entries, however, the most valuable information is what it can tell us about risk. In this section we will be introducing a few of the tactical concepts and tips you will need for this course. [B]Fibonacci Concepts[/B] [B]What ratios should be used? [/B]I will spare you the long, historical (and mostly erroneous) explanation of where the Fibonacci ratios come from and how it appears in the natural world. If you are really interested, here is an article to learn more. In the forex essentials course, we introduced Fibonacci retracements and the Fibonacci number series. From that number series we get the Fibonacci ratios, which are applied to price charts. While there are many Fibonacci ratios, in our experience, it is sufficient to stick with the standard levels of 23.6%, 38.2%, 50%, 61.8%, 100% and 161.8%. Slicing these levels into thinner segments results in a crowded chart and probably won’t improve your analysis. [B]Where do the lines go?[/B] The sticky part of fundamental and technical analysis is that they are both very subjective, which means that they allow for a great deal of interpretation and individual preference. However, with Fibonacci analysis that subjectivity is easy to handle and I have a good example to show you why... For the rest of this article and a video, click here: [url]http://www.pfxglobal.com/index.php?option=com_content&task=view&id=2164&Itemid=117[/url]