Introduction To Fibonacci Numbers (How They Work) Part 1
Forex Fibonacci numbers (How Do They Work?)
In mathematics, the Fibonacci numbers are the numbers in the following integer sequence, called the Fibonacci sequence, and characterized by the fact that every number after the first two is the sum of the two preceding ones: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, continues for infinity.
Introduction To Fibonacci
We are interested in the essentials of the Fibonacci sequence and how they fit into the trading world. As you probably know the golden ratio could be found anywhere in the nature. Markets are not an exception.
Fibonacci numbers traders use on charts work for one reason or another. There are a lot of debates WHY exactly price reacts to these levels but it is more important that it DOES. Fibonacci levels are sort of self-fulfilling prophecies. Means the more people use them, more powerful these levels become.
IMPORTANT:
Behind the scenes of the Forex trading world, magic happens. Smart money or Big banks are trading according to these very same Fibonacci number levels. Remember – Fibonacci is not just in trading but in any aspect of life numbers related. *This information is priceless to us – the retail traders.
Some Important Fibonacci Levels: There are many Fibonacci numbers however traders use and rely on some levels more than the others. Most commonly used levels are: 23.6%, 38.2%, 50%, 61.8%, 100% and 161.8%. This is just a tool which needs other confirmation before making any trade.
In mathematics, the Fibonacci numbers are the numbers in the following integer sequence, called the Fibonacci sequence, and characterized by the fact that every number after the first two is the sum of the two preceding ones: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, continues for infinity.
Introduction To Fibonacci
We are interested in the essentials of the Fibonacci sequence and how they fit into the trading world. As you probably know the golden ratio could be found anywhere in the nature. Markets are not an exception.
Fibonacci numbers traders use on charts work for one reason or another. There are a lot of debates WHY exactly price reacts to these levels but it is more important that it DOES. Fibonacci levels are sort of self-fulfilling prophecies. Means the more people use them, more powerful these levels become.
IMPORTANT:
Behind the scenes of the Forex trading world, magic happens. Smart money or Big banks are trading according to these very same Fibonacci number levels. Remember – Fibonacci is not just in trading but in any aspect of life numbers related. *This information is priceless to us – the retail traders.
Some Important Fibonacci Levels: There are many Fibonacci numbers however traders use and rely on some levels more than the others. Most commonly used levels are: 23.6%, 38.2%, 50%, 61.8%, 100% and 161.8%. This is just a tool which needs other confirmation before making any trade.
