what is the fibonacci sequence

The Fibonacci sequence is a mathematical series where each number. The sum of the two preceding ones: 0, 1, 1, 2, 3, 5, 8, 13, and so on. It’s a pattern found extensively in nature, art. And various scientific disciplines. In trading and technical analysis. Fibonacci ratios derived from this sequence (such as 0.618, 0.382, etc.) are identify potential support and resistance levels. As well as to predict price retracements and extensions. Traders often apply Fibonacci retracement levels to determine entry and exit points in the market, particularly during price corrections within an existing trend. This sequence and its associated ratios play a significant role in understanding market dynamics and making informed trading decisions, making it a crucial tool for traders and investors alike.