Utilising Fibonacci retracements in your trading strategy can help you identify areas of interest on a chart. Here's how they work ⤵️
As these percentages are the same in every Fibonacci retracement tool, you don’t need toLet’s create a sequence of numbers that starts with zero and one, and keep adding the sum of the two preceding numbers to the current one. If we continue this indefinitely, we get a number string that’s called the Fibonacci sequence.These numbers, of course, aren’t directly plotted to a price chart. But the levels used in the Fibonacci retracement tool are all derived from these numbers in some way.
The Golden Ratio describes the proportions of an astoundingly long list of phenomena in the universe and can be found everywhere in nature. Think of atoms, stars, galaxy formations, shells, even honeybees – everything from the smallest to largest scale may have examples of this proportion.
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