News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Earnings in focus https://t.co/iQZ3NTgriW
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in AUD/JPY are at opposite extremes with 63.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yPYfN7Ik9C
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 1.57% Oil - US Crude: 1.01% Gold: 0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/X7kHJDLKkY
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.46% 🇨🇭CHF: 0.42% 🇦🇺AUD: 0.41% 🇨🇦CAD: 0.29% 🇳🇿NZD: 0.20% 🇯🇵JPY: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NQsgL7dUy5
  • Ever wonder if there are other chart types that can be used for technical analysis? HLOC charts are discussed in the following article as well as their pros and cons. Learn more here: https://t.co/qV3c7a4YR3 https://t.co/Yqu2heS6Wz
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: 0.42% Wall Street: 0.37% Germany 30: 0.19% FTSE 100: 0.14% France 40: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/LCfrU0DwEH
  • France 40 IG Client Sentiment: Our data shows traders are now net-long France 40 for the first time since Dec 22, 2020 when France 40 traded near 5,477.70. A contrarian view of crowd sentiment points to France 40 weakness. https://www.dailyfx.com/sentiment https://t.co/58P7y6uEE0
  • Coming up in 20'. Please join me if you're free by clicking the link below https://t.co/629fFCZnuC
  • 💶 ZEW Economic Sentiment Index (JAN) Actual: 58.3 Previous: 54.4 https://www.dailyfx.com/economic-calendar#2021-01-19
  • 🇩🇪 ZEW Current Conditions (JAN) Actual: -66.4 Expected: -68.5 Previous: -66.5 https://www.dailyfx.com/economic-calendar#2021-01-19
Fibonacci Fundamentals

Fibonacci Fundamentals

Richard Krivo, Trading Instructor

Student's Question:What is the purpose of the Fibonacci Tool and how do you use it? Thanks.Instructor’s Response:The purpose of the Fibonacci Retracement Tool is to be able to make a determination as to how far a currency pair is likely to retrace after a strong move in either direction. This is helpful since it will allow us to make an entry decision so we know when to enter (or re-enter) a trade when the overall trend once again comes into play.Take a look at the chart below…

Fibonacci_Fundamentals_body_chart_4_27_11.png, Fibonacci Fundamentals

On this chart we see a long, bullish move to the upside of about 1000 pips. We would draw the Fib line (the red line) from the Swing Low (the lowest point of the move) to the Swing High (the highest point of the move). Our Fibonacci Tool then puts the Fib Levels on our chart.

If we are using the Fib Tool in a downtrend, we would do the opposite of the above. We would draw the Fib line from the Swing High of the move to the Swing Low.As is noted on the chart, when the pair retraces, it can likely retrace to one of these three levels: 38.2%, 50.0% or 61.8%. We would put the tool to use in a trading scenario by waiting until price action trades to one of those Fib levels and then shows a “bottoming pattern”. For example, some candles with long wicks below the bodies, dojis, spinning tops or a Morning Star bullish reversal pattern would be a couple of examples showing that the pair has, perchance, bottomed and is looking to reverse.We could then take a long (buy) position back in the direction of the overall trend. Our stop would go just below the lowest point that price action penetrated a Fib level during the retracement.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES