Butterflies and Fibonacci...
by: mariann.cocke.forex
Date: Mon, 26 Jul 2010 Time: 8:07 AM
Some years ago, a metaphor for "chaos theory" emerged: the flapping of the wings of a butterfly in South America might be the cause of a tornado in Arkansas.
The real meaning, for strategic Forex trading, is that "chaos" is not random.
Patterns, regular patterns, may overlay each other to the point of being "noise."
But smart Forex traders use computer based tools for finding actionable patterns.
One of them might be called "the butterfly pattern."
When a Forex trader sorting throught the complexity of price moves can see a "w" or "m" shape being drawn, then the "angle of the wings" can be used as a predictor of a rising or falling chart.
"Forex Trading involves high risks, with the potential for substantial losses and is not suitable for all persons. Past performance is not necessarily indicative of future results"....is something most people have read dozens of times, if not more. It is true that Forex trading is never suitable (since the 1970's) for anybody who doesn't realise they are competing every day against the world's best traders. What worked last year may not work today. The Nobel Prize winners at Long Term Capital learned that the hard way, and nearly brought down the world economy learning it.
However, those who can learn to interact with pattern identifying software, learn "what the Forex robot is saying" and can learn that $1000 a day every day is a "better profit" than making $20,000 on Monday, and losing $4000 on the other 4 days have the opportunity to benefit from the use of multiple Forex trading tools in giving them accurate, timely guidance.
Traders who want consistent results will Learn to Compare Forex Systems, find which ones "feel best" to them, and then begin acting with confidence when the trading signals show those clear signs of a butterfly's wings, or a coming storm.
"Patience" isn't about just sitting around. It's about knowing what you are waiting for.
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Forex Fibonacci
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