Fibonacci's Theory & Today's Forex

The main scientific work describes the Fibonacci numerical sequence: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. This theory reflects the concept of the golden section, known in ancient times. For example, each number to 1,618 times more than the previous one, and each of the previous 0,618 from the next. These numbers are called antipodes. A pair of 1,618 and 0,618 – only in the arithmetic of the absolute antithesis. These discoveries are widely used in analyzing the forex market.

Known worldwide Fibonacci theory was laid by the Italian mathematician Leonardo Fibonacci in 1710 after traveling the world of Leonardo, published a book “Liber Abacci” ( “The book of estimates”), in which he outlined his theory of the decimal is not known at that time in Europe.

Another method – the so-called “arc” Fibonacci (Fibonacci Arcs). Once held the line from the maximum point of the beginning of movement to the maximum point of cessation of movement, aligned arcs, which are held in certain levels: 38,2%, 50% and 61,8%. It is believed that these arcs are potential indicators of the level of support and resistance on the Suppression of points.

Building a “fan” Fibonacci (fans) has a similar principle. After holding the line, as in the previous case, we held the line at the levels of 38,2%, 50% and 61,8%. These lines are indicators of potential oblique force level.

Another way – the levels of correction (retracements). Once held the line from the maximum point of the beginning of movement to the maximum point of cessation of motion, held on 9 horizontal lines at levels of 0,0%, 23,6%, 38,2%, 50% and 61.8%, 100%, 161 , 8%, 261.8% and 423.6%. The choice of levels depends on the scale of the chart.

Fibonacci Time Zones – is a sequence of vertical lines at intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc. Close to these lines we should expect the most significant price changes.

Theory Fibonacci enjoy analysts around the world. However, you should not be limited only by it