Fibonacci theory in forex


fibonacci theory in forex

Back in the old school days of the s, there was this mad genius and professional accountant named Ralph Nelson Elliott. When he hit 66 years old, he finally gathered enough evidence fibonacci confidence to share his discovery with the world. According to him, the market traded in repetitive cycles, which he pointed out were the emotions of investors caused by outside influences ahem, FibonacciBloombergESPN or the predominant psychology of the masses at the time.

Elliott explained that the upward and downward swings in price caused by the collective psychology always showed up in theory same repetitive patterns. He believes that, if you theory correctly identify the repeating patterns in prices, you can predict where price will go or not go next. It gives them a way to identify precise points where price is most likely to reverse. Of course, like all forex geniuses, he needed to claim this observation and so he came up with a fibonacci original name: The Elliott Wave Theory.

But before we delve into the Elliott waves, you need to first understand what fractals are. Basically, fractals are structures that can be split into parts, each forex which theory a very similar copy of the whole. A sea shell is a fractal. A snow flake is a fractal. A cloud is a fractal. Heck, a lightning bolt is a fractal. One important quality fibonacci Elliott waves is that they are fractals.

Much like sea shells and snow flakes, Elliott waves theory be further subdivided into smaller Forex waves. Nurture your mind with great thoughts, for you will never go any higher than you forex. We introduce people to the world of currency trading, and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.

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2 thoughts on “Fibonacci theory in forex”

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