Fibonacci is a trading indicatorm.Leonardo Pisano Fibonacci is a famous European mathematician who Lived in Roman. His fame stems from the unique series of numbers that he discovered which today are used as benchmark for traders across the 5 continets.
Mr.
Fibonacci found that 38.2%, 50%, 61.8% hold a very popular mathematical
relationship as the continually appear in automatically.It depends on
historical studies it has been determined that after a significant move in
currency prices and the rate begins to retrace, it tends to find support or
resistance at 38.2%, 50% and 61.8% of the larger move.
It represent areas where there is a high
likelihood that the retracement will stop and the larger move will resume. A
large number of investors also believe these percentages have become a
self-fulfilling prophecy as the use of these numbers has become more and more
popular and Fibonacci relationships is significant and widely watched and if
used in conjunction with other indicators can serve as lucrative trading tool.
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