Fibonacci Sequences in Technical Analysis

Leonardo of Pisa, nicknamed Fibonacci was born in Italy around 1175. Fibonacci was one of the greatest mathematicians of the 13 th century.
Fibonacci is known for the discovery of a series of numbers was called after him Fibonacci numbers or Fibonacci sequence.
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 ...
In the Fibonacci sequence of each term, with the exception of the first two, is the sum of the two previous terms, for example, 2 +3 = 5, 3 +5 = 8.
Fibonacci and Golden Ratio
Fibonacci also found that divide each number this sequence by which precedes it produces a ratio of about 1618 after the first four calculations. This number is known as the coefficient of gold. For example 233/144 = 1.618
Fibonacci Levels
The proportion between any number and the numbers immediately above 0618 approaches eg 21/34 = 0.6176
Also, The relationship between any number and the next two largest number approaches 0382 for example 89/233 = 0.3819
These Ratios usually rounded to 1.62, 0.62 and 0.38 percent and the call of these ratios Fibonacci levels.
Fibonacci Indicators
Fibonacci indicators help traders to anticipate support and resistance levels along with the price targets.
Trading software automatically calculates indicators and pointed out what should learn how to use Fibonacci Them.
There are many indicators such as:
a. Fibonacci Arc B. Fibonacci Fan C. The Fibonacci Retracement D. Extensions Fibonacci E. Clusters Fibonacci F. Fibonacci time zones G. Channel
Fibonacci Fibonacci Arcs are drawn in predicting support and resistance levels, which are three curves that usually is between the high and valley in a given period.
Fibonacci Fans are three straight lines are used to predict the support or resistance areas.
Fibonacci Retracements are based on a Trendline drawn between through an important and high. If the trend is increasing, the decrease of lines down from 100% to 0%. If the trendline is declining, the reduction of the lines will rise from 0% to 100%.
For more information with images of this page read: Fibonacci sequences in the art Analysis
About Author: Al Mostafa Soleimanzadeh. Invest in the Stock Market Tips, Find Free articles on investment on its website.



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