Forex encyclopedia

Random article: Fibonacci Chart
From this article you will learn the history of Fibonacci numbers and, in particular, their role in chart analysis of the Forex market. Leonardo Fibonacci (Leonardo Pisano) – is a famous Italian mathematician who lived in XIII century. He got acknowledgment as a great person following to publication of his work “Liber Abaci”. The book was issues in 1202, the second revised edition – in 1228, which remained till our time. His work introduced Hindu-Arabic number system to Europeans. It greatly contributed to such branches of science as physics, maths, astronomy, biology etc. Fibonacci sequence allows to interpret various natural phenomenon and forms, whereas “golden ration”, according to Johannes Kepler, is one of the treasuries of geometry.
A number of reversal patterns is indicated in Forex: Head and Shoulders, Double top, Double bottom, Triple top, Triple bottom, Diamond. Head and Shoulders Top – is a classical reversal pattern of technical analysis, which is formed following to a long upward trend. The model is considered to be fair reliable and is often formed. But despite above-mentioned, many beginning traders do not manage to take profit using this graphic pattern. The reason is that positions are opened prior to forming this model. Let's figure out the structure of the figure and its formation on the chart of trading terminal. The model consists from three subsequent price extreme points, the middle one is higher than others (head), and the rest two are below the middle one and are roughly equal (shoulders). All three uphills are supported by the neck line.
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