|Trading with Fibonacci Clusters
Online trading can be very difficult due to the changing tides in the economy. The problem most people ran into, though, was that they could not foresee the future, whether short term or long.
Granted this will always be the case when it comes to trading, the good news even right now is that there are tools that are carefully designed to predict market trends. I’m talking of course about the use of Fibonacci Clusters.
You will most often find these illustrated by a bar on the side of price charts. It is most simply a collection of Fibonacci retracement lines (the graphs that allow you to see the rise and fall of a chart) which are represented by different shades. When a line overlaps with another, it makes the shade turn darker. The darker the shading, the more retracement lines there are, which in turn says a lot about market trends.
Everything is based on probability of a reversing trend for each price level. All it takes is a little extra effort in researching the various trades you are pursuing. Many traders will also take volume into consideration and these cluster levels.
Success in the market is grounded on staying ahead of the game. You can use Fibonacci Clusters in addition to a few other resources. Remember that the markets are a multi faceted concept that needs to be looked at from all angles. Properly using Fibonacci Clusters will potentially give you an edge on determining when your trades are hot and when they are not. There is more beyond that, though. Stay up to date with the news and listen to what the gurus are saying from time to time because there is a lot of insight that can be taken in and social/economic changes are hard to predict on a chart alone. Ultimately, though, it’s your call. Use clusters with other technical tools and your feet will be planted firm on a good starting point for success.
Fibonacci Cluster Calculations
My broker has lower commissions,
but you have to trade from his office.
Overtrading can have serious consequences.