how fibonacci analysis can help improve your forex trading
TRANSCRIPT
![Page 1: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/1.jpg)
How Fibonacci Analysis Can
Help Improve Your Forex Trading
![Page 2: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/2.jpg)
FIBONACCI NUMBERS EXPLAINED
• Centuries ago, a mathematician named Leonardo Fibonacci, introduced an interesting relationship between numbers.
• He introduced a number sequence, which starts with zero and one (0, 1). then to each number he adds the previous one which results in the following sequence...
![Page 3: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/3.jpg)
FIBONACCI NUMBERS
• 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765,10946……and so on and so on.
• Notice that each number of this number succession is formed by the sum of the previous two.
![Page 4: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/4.jpg)
FIBONACCI RELATIONSHIPS
• Fibonacci discovered an
interesting relation between
the numbers in his sequence.
![Page 5: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/5.jpg)
FIBONACCI RELATIONSHIPS
• He realized that each number is 61.8% of the next number in the set.
• Each number in the set is 38.2% of the number two positions to the right in the sequence.
• Every number in the set is equal to 23.6% of the number which is three positions to the right of it.
![Page 6: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/6.jpg)
The 61.8% and the 38.2% ratios are all around us in the
physical universe. You find these values all over the
natural world – in plants, in animals, in space, in music, in
fingerprints, and even in human faces!cc: noaha - https://www.flickr.com/photos/69919530@N00
![Page 7: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/7.jpg)
Since people constantly see Fibonacci ratios
subconsciously, human nature has been
adapted to perceive this as a harmonic ratio.cc: avrene - https://www.flickr.com/photos/23212428@N00
![Page 8: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/8.jpg)
FIBONACCI RETRACEMENTS
• This is the most famous Fibonacci tool and is available on nearly every Forex trading platform.
• When you apply the Fibonacci Retracement instrument on the chart you will get horizontal lines, which indicate the levels 0.00, 23.6, 38.2, 50.0, 61.8, and 100.
![Page 9: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/9.jpg)
![Page 10: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/10.jpg)
FIBONACCI FAN• The Fibonacci Fan will extend three
diagonal lines, which vertically are distanced with 38.2%, 50.0% and 61.8% from the top or bottom of the trend.
• After we place our Fibonacci Fan on the chart, we observe the way the price reacts to the diagonal Fibonacci levels.
![Page 11: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/11.jpg)
![Page 12: How Fibonacci Analysis Can Help Improve Your Forex Trading](https://reader030.vdocuments.us/reader030/viewer/2022012323/58e94a371a28ab262c8b510f/html5/thumbnails/12.jpg)
Check Out the “IN DEPTH”
Blog Post on this Lesson