Fibonacci

Recently, the Fibonacci numbers was widely disseminated among Forex traders, due to high accuracy in predicting turning points in the market. You can use Fibonacci numbers as a tool for forecasting and market analysis in online forex trading currency.

Leonardo Fibonacci was a famous Italian mathematician, who discovered a simple sequence of numbers, formed coefficients.The sequence of Fibonacci numbers is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89. This sequence of numbers displayed, starting with 1, followed by 2 plus 1 +2 to get 3, the third digit. Then, 2 plus 3 to get 5, the fourth digit, etc.

If you measure the ratio of any number to the next larger number, you get 618. Eg., 34 divided by 55 equals 0.618.

Ratio of any number of standing in front of a large number is 62% (Fibonacci correction level of prices).Reversible value of 62% is 38%, and this factor is also called the level of Fibonacci price correction.

A study conducted by mathematical psychologist Vladimir Lefebvre, showed that people think through the positive and negative ratings on the coefficient, which reaches phi. That is, the coefficient of 61.8% indicates a positive evaluation, and 38.2% - a negative, and Fibonacci numbers embedded in the psychology of the trader.