Leonardo Fibonacci is a famous Italian mathematician, founder of a simple series of numbers that refer to ratios valid for natural proportions of things on the planet. If to measure the forex fibonacci numbers of any number to one of the next higher number the result will be 0. 618 — are the most important to watch for. Fibonacci Extension Levels are used as targets for taking profit: 0.
618 — here are the most useful for traders. Fibonacci retracement and extension levels carry important information for experienced as well as novice Forex traders as they help to identify entry and exit points during the trade. This chapter will introduce traders to basic rules of applying Fibonacci method in Forex. And now let’s get straight to the point.
Where and how to use Fibonacci study on Forex charts? As you have noticed, there are some A, B, C, D points on the chart. They represent the highest spikes of the price moves or simply highest price swings. To apply Fibonacci study to the price moves we will always look for those points. Forex trading is a high risk investment.