Fibonacci

Fibonacci is a popular technical analysis tool in the financial markets, used to predict potential support and resistance levels. This tool is based on the Fibonacci number sequence. A series of numbers where each number is the sum of the previous two numbers (1, 1, 2, 3, 5, 8, 13, …). Those ratios are, for example, 38.2%, 50%. And 61.8%, is derived from the relationships between the numbers in the series. And is applied to identify important levels on the price chart. When prices correct, It’s levels can help identify points. The price can reverse or continue following the current trend.