Forex Strategy, based on the method of harmonious trade based on Fibonacci ratios of 1.618 and the RSI indicator forex.
Let's look at a simple technique of applying 1.618 Fibonacci extension for combined motion indicator on the forex price chart 'Relative Strength Index »- RSI (with levels 30 and 70), which first need to be installed on schedule MetaTrader trading terminal 4.
Fibonacci ratio 1.618
1.618 Fibonacci ratio is significant, because it is very chastoukazyvaet attrition price movement. Once the market exceeds the 1.618 Fibonacci extension level, it often represents the extreme price action, which is very difficult to maintain for a long time. As tolkoproektirovanie 1.618 was achieved, which means that the graph is formed business opportunity to enter the market in the art. Because the 1.618 Fibonacci level is a price action that is extreme and it is in this field may prompt the emergence of a trend reversal in the market.
Relative Strength Index - RSI
As you probably already know from the technical analysis of forex - Relative Strength Index (RSI) is important enough oscillator, followed by the price, which ranges between 0 and 100. The indicator forex RSI relative strength often rising above the level of 70 and 30 falls below the level that complies with overbought and oversold levels respectively.
Bullish design Fibonacci level 1.618
Bullish design Fibonacci level 1.618 often occurs under extreme selling in the market. Once the market is down, the price action tends to often become pereprodlennym. And that is the point of designing Fibonacci 1.618 tends to provide the best opportunity for a trader to enter into the transaction on the market, as the market is only beginning from this area, primarily provides good strong trend.
