Dynamic Fibonacci MT4 Indicator – This is advanced automated Fibonacci mt4 indicator, witch draws several fibos on your chart. Every fibo user know how powerful is indicator like this one.
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More about Dynamic Fibo
In the Forex market, technical analysis is an important concept. When we talk about technical analysis, we basically talk about math. Application of Fibonacci numbers is very common and popular in the financial markets. The idea is that in the aftermath of a significant price movement, subsequent levels of support and resistance will form around “Fibonacci Numbers” usually 61.8%, 50%, and 38.2%.
After a long upward price movement, traders who focus on technical aspects pay particular attention to these pullback-retracement levels. For example, if the price of a currency pair has recently rallied up, a technical trader might sell until the price declined to the 38.2% level and begin buying when it reached the 50% level.
Conversely, after a long downward price movement, the same technical traders may long (buy) until the pair recovers to the 38.2% level and begin selling as the currency pair approached the 50% level.
Fibonacci numbers are also used to calculated price movements extensions.
How to Trade With Dynamic Fibonacci
Dynamic Fibonacci allows forex traders to calculate possible targets of correction, and also strong resistance and support zones. Once the currency pair begins to pull back-retrace (or expand), then you can plot these retracement (expansion) levels on a chart to look for signs of a reversal.