Fibonacci Trading Glossary F-P
What is FCA?
FCA is the British Financial Conduct Authority, and it is a financial regulatory body.
Find out more: www.fca.org.uk
What is Federal Reserve?
The Federal Reserve bank or FED is the central bank of the United States. FED is a system of 12 regional central banks across the US.
Find out more: www.federalreserve.gov
What means Foreign Exchange Market?
The Foreign Exchange Market (or Forex or Fx) is a global decentralized Financial market where currencies are traded one against the other. The Forex market is a vast financial market, the largest in the world, with daily volumes of more than $5 trillion.
What is the Fibonacci Extension?
The Fibonacci extension is a tool used for defining price targets. The extension levels are found as horizontal lines placed up and down of the previous trend move. These extension levels can be used as general support / resistance levels.
What is the Fibonacci Fan?
Fibonacci Fans are lines based on the Fibonacci numbers drawn on any price chart. The Fibonacci Fan tool is also used for the determination of general support and resistance levels. Each line is created between two key points that are representing an important High and an important Low. After placing these two dots, the Fibonacci Fan calculates the vertical distance by the key ratios 0.382, 0.50 and 0.618.
What is a Fibonacci Pivot?
The Fibonacci Pivots are pivot points that can be used for identifying major support and resistance levels.
What is a Fibonacci Ratio?
The Fibonacci Ratio or else Phi (φ) refers to the ratio between any two successive numbers in the Fibonacci sequence. The four important Fibonacci ratios are 0.618, 1.0, 1.618, and 2.618.
What is the Fibonacci Retracement?
The Fibonacci retracement is a very popular tool based on the Fibonacci ratios. The tool is used for identifying major support and resistance after a significant price movement.
What is the Fibonacci Sequence?
The Fibonacci sequence refers to a sequence of numbers where each number equals the sum of the two previous numbers. (0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987...to infinity).
What are the Fibonacci Time Zones?
The Fibonacci time zones are vertical lines in a price chart used for the identification of important upcoming volatility areas.
What is FOMC?
FOMC is the acronym of Federal Open Market Committee, and it is a branch of the US Federal Reserve bank. FOMC is responsible for short-term and long-term monetary policy decisions.
What is a Golden Ratio?
The golden ratio which is symbolized by the Greek letter Phi “Φ" equals approximately 1.618.
What is a Golden Spiral?
A golden spiral in Geometry is a logarithmic spiral whose growth factor is Phi (Φ). Α golden spiral gets wider by a factor of Phi for every quarter turn it makes.
What is Harmonic Trading?
Harmonic Trading is a highly sophisticated technical analysis method that aims to forecast major price reversals based on chart patterns recognition and Fibonacci ratio alignments.
What is Hedging?
Hedging is an investment practice that aims to reduce the risk exposure of a portfolio via opening counter positions.
What is High-Frequency Trading?
High-frequency trading (or HFT) refers to an advanced arbitrage practice based on powerful computing technology.
What is a Leveraged Product?
Leveraged products are financial products that allow traders to gain greater exposure to the market.
What is LIBOR?
LIBOR means London Interbank Offered Rate, and it is a benchmark of daily interest rates.
What is MetaTrader?
MetaTrader is an electronic platform for trading Forex, Equities, and commodities which is very popular among traders around the world.
Find out more: www.slideshare.net/Giorgos2u/metatrader-4-tutorial
What are Moving Averages?
Moving Averages provide a mathematical average of the most recent prices. Moving Averages can be used for trend identification but also as a simplified signaling machine.
What means OTC?
OTC means over-the-counter and refers to a market that is not situated on a formal exchange. The Foreign Exchange market is an OTC market. Trading in OTC is called off-exchange trading.
What is PMI?
PMI means Purchasing Managers Index and it is a monthly-published report by Markit, ISM, and other regional groups. PMI is an indicator of upcoming economic activity.
What is a Price Channel?
A price channel consists of two parallel outer lines and a central linear regression line. Price channels can be either bullish or bearish and can be commonly identified in trending markets. When the price of an asset reaches the upper line of a price channel it is a sign of an upcoming downtrend. When the price reaches the lower line of the channel it is a sign of an upcoming uptrend.
What is the Profit Factor?
The Profit Factor is an MT4 metric that is used to evaluate the efficiency (profitability) of any trading strategy or any trading system. The profit factor is calculated simply by dividing the total value of winning trades to the total value of losing trades.
For example, if the winning trades of a trading system have generated $100,000 in profits, and the total value of losing trades was $50,000, then the profit factor of this trading system is 2.0.
■ Fibonacci Trading Glossary F-P