Fibonacci Numbers Calculator

The following notes are designed to help you use the Fibonacci Numbers trading risk calculator. This calculator can be used for stocks or the FOREX market, simply change the units that you enter as appropriate, either dollars, pounds or the exchange rate etc.

You only need to enter 3 price points, the rest is calculated

Up Trend (Buying)

1.Chart Valley Point - enter the low value

2. Chart Peak Point - enter the high value

3. Chart Retracement Point - enter the retracement value.

Down Trend (Short Sell)

1. Chart Valley Point - enter the high value

2. Chart Peak Point - enter the low value

3. Chart Retracement Point - enter the retracement value

Trade/Don't Trade factor - set this to determine the reward/risk ratio, the default is 2 which means that unless the reward potential is at least twice as big as the risk potential don't trade. You need to set this to suit your own trading style.

Fibonacci Retracement levels - these 3 boxes show the 38.2%, the 50% and the 61.8% retracement levels, these are from either the high point, or the low point, depending on the trade type (buying or shorting).

Price Targets - 3 price targets are calculated, with obviously increasing values

In the bottom section the calculator calculates a reward/risk ratio for each of the 3 price targets, it shows the potential downside risk (as a %) and the potential upside reward (as a %), then calculates the reward/risk ratio. Using the value set in the Trade/Don't Trade Factor it will indicate if you should do the trade or not

See the Fibonacci Trading Risk Calculator to see the calculations in action.

There is a great new CD tutorial course that will teach you everything you know to develop the ability to pinpoint market top and bottom turning points. Check out the "FibonacciSecrets" CD Course by clicking here

This report is provided in part by permission of Mark McRae, by the same author are these excellent trading courses and ebooks:

Trading For Beginners

The Surefire Forex Trading Course