Using price correction at FOREX

At the ascending tendency the intermediate price dropping, which represent the percentage ratio from the previous rising according to Fibbonachi, can be used for opening new or additional long positions at FOREX. One should note that in this case the analysis of the percentage ratio of correction length refers to very short periods of market movements.

The most suitable moment for opening the long position is the 38^th price back which takes place after the bulls’ break or the ascending tendency. It’s quite reasonable to open short positions when at the descending tendency prices go up covering from 38 % up to 62% of the length from the previous drop.