There are so many tools that can be used in your trading. Here is an example of one of those called Fibonacci. The interesting thing is how old or rather where this came from. Leonardo Fibonacci was a thirteenth-century Italian mathematician who discovered the significance and unique properties of a simple number series, in which each numeral is added to the previous to create the next one in the series: 0,1,2,3,5,8,13, etc. Fibonacci numbers, and more significantly the ratio of those numbers to each other, can be found throughout nature and cycles. Fibonacci ratios are used in technical analysis to predict retracement areas during pullbacks, as well as targets, called “extensions,” for projected price moves. In this next video, we show you the application of Fibonacci and how effective it can be. Though this is only one tool and it is advised to use a complement of tools to show you where the trend is going. |
Using the Fibonacci Tool |
