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Fibonacci Arcs

Many of you know and have read in the blog enough about fibonacci retracements but Fibonacci arcs are support and resistance that move in time, being the time factor included in this indicator.

The Fibonacci arc do not have in Metatrader 4 but you can insert through freestockcharts.com . As with the Fibonacci retracements we draw an extension from two points; Once we made ​​showed levels 38.2%, 50% and 61.8% although if you wish you can also show the level 23.6% to 76.4%.

What are fibonacci arcs?

Are semicircles extending from a line between two points marked manually, with the 50% average post. The Fibonacci arcs are used to identify support and resistance where price is likely to rebound, as occurs with fibonacci retracements.

A picture of the flag inserted into the web platform chart

arc_fibonacci

Pink boxes represent the start and end of a major wave of prices, so that the indicator is connected between these points. lines are automatically displayed, showing levels fallback 38.2, 50 and 61.8. In this case, the kick that followed touched each of these levels and bounced.

Applications

The Fibonacci arcs can be used in all time frames, from the 1 minute charts and apply to the main markets, such as stocks, currencies, commodities and bonds.

Here you have another image with three arcs fibonacc i marked.

arcs_fibonacci_2

Disadvantages

It is unlikely that the price respects the exact level of the Fibonacci arcs.

Beforehand, either on the arcs which will bounce, although we prefer the 61.8% level .  however as an alternative or complementary to price action and other indicators tool is very effective. It is usually a confirmation tool.

Final Words

The Fibonacci Arcs are an interesting for your time factor. Normally it should be used as a CONFIRMATION tool no type analysis; highlighting areas that can provide support or resistance . A signal trading strategy, and the signal is produced in the vicinity of one of the arcs, then bows confirm the signal. As always, you have to practice and test the indicator.

Recommended Reading

How to Trade Binary Options

Make A Living From Binary Options

Binary Options Trading Pin Bars

Binary Options Trading with Fibonacci Retracements

Binary Options Demo Account

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