The concept of Fibonacci Forex trading is being used by millions of Forex traders all around the world. These numbers forecast the coming oscillation in the Forex charts. Though, at the same time, the prediction made cannot be proclaimed as flawless and straight hitting to the mark, the closeness it gets to is quite amazing. The Fibonacci levels are very elementary and fundamental concepts which need to be grasped before delving into the risky environment of Forex trading.
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Leonardo Fibonacci, a mathematician in the 1200�s created a numerical sequence of numbers.
From left to right after the first two numbers, the values increase successively. Each number, in turn, is determined by the sum of the previous two numbers.
to get the next value of Fibonacci series after 377 add 233 to 377 and arrive at 610.The other interesting relationship of this number sequence is that if we take the ratio of two successive numbers in the Fibonacci series (that is, we divide each number by the number after it in the sequence) we will move towards a particular constant value. That value is 0.6180345 which has been referred to as �the golden ratio�. If you also calculate the ratios using alternate numbers in the Fibonacci series (that is, do the same calculation but skip over a number) the resulting ratios approach e 0.38196
Leonardo Fibonacci, a mathematician in the 1200�s created a numerical sequence of numbers.
They even show up in forexgladiator.com. Ratios found in the Fibonacci sequence can be seen in currency price moments. They also appear in the price movements of stocks and other types of investment. The big three numbers you should pay attention to in Forex trading are 0.382, 0.5, and 0.618.