Assets have a tendency to retrace, rather than move in a straight direction, traders use the Fibonacci Indicators as reference points to predict a retracement versus a reversal. Extremely accurate when analyzing chart pattern reversals. Fibonacci indicators also provide an excellent visual map. Combined with other indicators, the savvy trader can find optimum entry and exit points.
Technical Analysts use these Fibonacci Indicators known as Fib-lines to predict Price Targets and Support/Resistance Targets. While nothing can predict the future with 100% accuracy, adding these to your technical analysis tools greatly enhances your ability to be in profitable trades.
John RomanJohn is an active trader and educator at Investors Trading Academy with an MBA in Finance from New York University. He began trading in 1995 focusing mainly on commodities and options, then transformed into forex investment. His current specialization covers all aspects of forex trading utilizing fundamental and technical analysis, namely chart pattern analysis. Mr. Roman has conducted training seminars on all over the world from novice to innovative strategies. He provides a solid, collaborative and extremely encouraging training atmosphere to assist Forex traders in locating and trading momentum moves, using confirmed patterns and methods.