The Fibonacci retracement uses the mathematical sequence known as the Fibonacci sequence to predict market behavior, but its reliability may be overstated. The sequence follows a simple rule, and each number is approximately 1,618 times the previous number, forming the basis of the analysis under the Fibonacci retracement. The theory is that when the value […]
Leonardo da Pisa, also known as Fibonacci, was a renowned Italian mathematician in the Middle Ages. He introduced Arabic numerals and decimal points to the West, and the Fibonacci sequence, which describes a number of phenomena. His most famous work, Liber Abaci, introduced new concepts and mathematical problems. Fibonacci, known in his time as Leonardo […]
Fibonacci ratios, discovered by Leonardo Fibonacci, are used in technical analysis to identify price resistance and support levels and turning points in price trends. Elliot Wave Theory uses Fibonacci ratios to identify inflection points in five-wave patterns. Fibonacci ratios are also used to identify retracement levels. While some traders are zealous supporters of these methods, […]
