The forex Fibonacci retracement pattern was introduced by a mathematician named Fibonacci born in 1175 and died in 1240. Since invention it has turned into a powerful tool of critical and technical analysis which allows traders to organize their trades in the forex market. Used by many technical traders, the fibonacci retracement sequence helps them to identify specific areas of transactions to be placed, predict target costs or to avoid loss.
The fibonacci retracement calculator therefore is a tool used to calculate the potential descend level the forex market can drop to before it rises again or the highest it can reach before it reduces again in a trend.
FEATURES OF THE CALCULATOR
It has the retracement and extension feature which allows you to accurately calculate the moves in the market. It carries a column where the trend direction values are inputted and then a calculate button which when used shows the calculated retracement and extension levels.
USES OF THE FOREX FIBONACCI RETRACEMENT CALCULATOR
It is referred to as a gold mine by most traders because of the simplicity it affords to calculate moves without much work. It can be used to dictate profit aims using the extension component. The Fib calc as it is fondly called can be used to create opportunities of gain by getting the broker to understand precisely where to set his profit target. The use of this calculator in online forex market helps to determine how far a market can go before retracing in another direction. It provides the trader with an insight to be able to anticipate market price fluctuations according to the calculated results. It also serves as a helping tool to traders to enable them plan ahead for future trades.
BENEFITS OF USING THE CALCULATOR
It is simple to use and can be used for any currency quote or pair within any time frame. But it is important to understand that the more distant the time frame, the more accurate the results to be expected.
A trader can detect accurate market timing for trades using this tool which also provides an expo to transaction management. Correct timing is everything in the forex market so the right use and understanding of it helps the trader predict the right time to enter and exit the forex market.
The use of the fib calculator gives a key horizontal price level which is often used to achieve higher volumes or levels.
It paints a futuristic picture of a view which can be manipulated to the trader’s advantage in carrying out his transactions.
The fibonacci calculator is a trader's best friend in predicting trends but while using it, one should keep in mind that the tool only serves its purpose if the market is trending either in the upward or downward direction. If it is not the case then a more fitting tool should be chosen to detect the accurate time to enter and exit the market.
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