fibonacci trading strategy for futures

Fibonacci is a set of tools victimised to analyze market trend and direction and to pulverized-tune entries and exits. Based on calculations introduced by Italian mathematician Leonardo Fibonacci in the 13th century, these patterns and methodology have been adapted into several field of study analysis tools frequently used today.

NinjaTrader empowers users with 4 distinct ways to utilisation Fibonacci, including 4 Fibonacci drawing tools and a technical indicator!

See NinjaTrader's Fibonacci tools in carry out in this quick video overview:

Fibonacci Sequence danamp; Golden Ratio

Leonard Fibonacci helped popularize Hindu-Arabic language numerals in European Union in the early 13th century and later introduced his celebrated Fibonacci sequence. The Fibonacci numerical serial is as follows, with each number being the sum of the preceding two:

0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610 …

Found within the Fibonacci succession is the Golden Ratio, or roughly 1.618. If you part a number of the sequence aside the preceding number, the resulting ratio will be approximately 1.618.

55/34 = 1.618

The Golden Ratio is ordinarily observed in nature, from seashells and pine cones to even spiral galaxies in outer space! Da Vinci Fibonacci's findings were understandably a disclosure and an important discovery, but how do they relate to business markets?

Market Analysis Using Fibonacci

Although IT is alien if these factors actually bring up a break in the movement of financial markets, Fibonacci patterns play a key role in subject area analysis for many traders. Below are examples of NinjaTrader's Fibonacci tools applied along trading charts.

Fibonacci Retracements/Extensions highlight potentially important price levels such as support and resistance. This tool around is found in the Draftsmanship Tools menu by right-clicking within a chart. Later drawing a cable betwixt two points connected a graph, Fibonacci Retracements May indicate important support, immunity, tieback and setback areas.

Fibonacci Time Extensions plat Fibonacci values over the x-axis, or time axis of the chart. This tool can be constitute in the Drawing off Tools menu. Unlike Fibonacci Retracements, which plot on the y-axis or Leontyne Price axis, Fibonacci Clock time Extensions use the same methodology in denotation to time on the x-axis.

Fibonacci Circles are other way to plat Fibonacci values on a chart with concentrical circles, referencing values on both the time and Leontyne Price axis vertebra at the same time. This have is too found in the Drawing Tools menu.

Fibonacci Pivots plot potential support and immunity levels calculated by multiplying the prior range against Fibonacci values. Similar to retracements or extensions, Fibonacci pivots can help to point out epochal Price levels such as support and resistance. This instrument is institute in the Indicators menu, which can be accessed by right-clicking within a chart.

Free Commercialise Analysis with NinjaTrader

Combination Fibonacci tools with additional technical analytic thinking techniques and indicators can help confirm trends, reversals, and overall food market thought. Atomic number 102 matter the psychoanalysis come near, employing proper position management with risk of exposure mitigation measures is imperative.

With complete 100 pre-built indicators to aid in your technical analytic thinking of the markets, NinjaTrader is always free to use for advanced charting, backtesting and trade simulation. Download NinjaTrader's award winning trading platform to get started with FREE Fibonacci tools!