Today, when people have such a powerful tool as Internet trading at their disposal, the opportunities to make a profit on financial exchanges have increased manifold. Traders from all over the world use dozens of highly effective technical tools that can be installed on the chart in just two clicks to indicate the best positions to enter a trade.
It is worth noting that all these indicators have been around for quite some time. The most traditional technical analysis tools appeared at the beginning of the last century and required manual calculation. Fortunately, you no longer need to carry out complex calculations using cumbersome formulas. It makes a world of difference for today’s traders comparing to of traders before the Internet era.
The Fibonacci Line Indicator is complicated but looks accessible on the trading screen. It will help you not only to determine the reversal or correction point, but also to calculate the duration of the price movement. With Fibonacci Line Indicator you get a super useful information in the binary options market, where a transaction lasts a short period of time, and it is fundamentally important for a trader to buy a contract at the beginning of the current movement. Where to find it? Fortunately, this tool is available to clients of the Binomo trading platform.
More about the Fibonacci Line
The name of the indicator suggests that the formula is directly related to the famous Italian mathematician. Indeed, the advisor is based on the Fibonacci sequence, discovered about seven centuries ago.
The formula for calculating the indicator uses the famous “golden ratio” – the same mean discovered by Fibonacci and to this day surprising scientists who notice it in many processes of human life and even in nature.
Naturally, the sequence of the great mathematician could not be ignored by financiers who use the ratios of its numbers, expressed as percentages.
As a result, we get a scale with the main levels: 0; 23.6; 38.2; 50; 61.8; 71.6; 100. However, some traders use a scale even beyond 100%. For example, 161.8; 261.8; and 423.6.
In trading, often the trend movement with its corrections and impulses obeys the above-mentioned formula, starting from one or another level.
How to use Fibonacci Lines
In order to use it in trading, you need to install it on your workspace. There is no need to configure parameters for the timeframe here. The advisor works on any time interval. The only condition for using Fibonacci Lines is the presence of trending. The tool does not work in the side or still market.
How to install? Follow these steps: click on the name of the instrument and it appears on the work screen. Then you need to use the regulating line, stretching the scale from the bottom of the trend to the top for an upward trend or vice versa for a downward trend.
Now all that remains is to track confirmed rebounds from the above-mentioned levels (a reverse candle should form).
As you can see, trading using Fibonacci Lines is extremely simple. Navigating the intricacies of trading doesn’t always have to be a complex endeavor. The unanimous praise from professional traders underscores the effectiveness of this tool across various exchanges, be it the dynamic stock market, the ever-shifting foreign exchange realm, or the fast-paced world of binary options. So, as you venture into the exciting realm of trading, consider letting the timeless harmony of Fibonacci lines guide you through the market fluctuations, simplifying the path to potential success. Happy trading!
Caution! This article is not intended to be investment advice. No strategy can guarantee 100% correct trading results. A successful trading result in the past is not a guarantee that it will be repeated in the future. Any information contained in this article is for informational purposes only.
