The Fibonacci Spiral and Fibonacci Time Projection is among the popular Fibonacci Studies on the Forex market. Using these two methods in combination help traders to determine powerful support and resistance levels of the market along with time prediction.

That is why some traders may have very accurate results from the Fibonacci Spiral, for example, institutional traders, while others may not succeed with it. To make the Fibonacci Spiral, you should first pick up a Starting Point. It is up to you what point to choose. Then you calculate the key Fibonacci ratios for the certain key price levels of the market. Fibonacci Ratios can be calculated as follows.

We take the ratio of two successive numbers in Fibonacci series 1, 1, 2, 3, 5, 8, 13 and so on and divide each by the number before it.

Finally we have got the following series of numbers:. Selecting the starting point is however a difficult task. Now after drawing our Fibonacci Spiral, we are able to forecast the critical price levels on the chart, where the major market events like price reversals, huge spikes etc. So we can forecast the movement of the market at certain times using the intersection of the spiral with the chart grid.

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Thus, with the help of Fibonacci Spiral, we can find an optimal relation between the price and the time and can effectively and efficiently predict the crucial volatility levels of the market. Every point on the Fibonacci Spiral gives us an intersection of some particular price and time. The market shows a significant activity at those intersection points and the spiral keeps guiding us about this as it also keeps growing on the same path with the time.

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The Fibonacci Spiral can be reconfirmed by the Fibonacci time projection analysis. If we get Double-Co-incident signal from both of these Fibonacci strategies, we get more confidence to initiate our trade. Then the Fibonacci levels of time are estimated based on these two critical levels of the market and multiplying the further values with the Golden Fibonacci Ratio of 1.

Though Fibonacci Time Projection is a good tool to forecast the important times of the market, where the significant movements are highly expected in the price of the asset. But in some cases, it has been observed that the significant events get happened a little bit earlier or a little bit after the anticipated time, hence giving a disappointment to the traders.

So, for a better accuracy and eliminating the false signals, it is advisable that the Fibonacci Time Projection analysis should be used in conjunction with the Fibonacci Spiral Analysis and with other supportive data like Stochastic etc. How to use Elliott Waves. What is Fibonacci Channel.

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Finally we have got the following series of numbers: Fibonacci Time Projection The Fibonacci Spiral can be reconfirmed by the Fibonacci time projection analysis. You also may be interested in: How to use Elliott Waves What is Fibonacci Channel How to use Gator Oscillator Fibonacci Fan. Start trading OPEN DEMO ACCOUNT BECOME PARTNER. Tell us Tell us. Thank you, your opinion is important for us! Your browser does not support javascript.

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