Forex Trading Method of Fibonacci Trading Method

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LeonardoBigolloP Whatisforexrebateano, also known as forexrebatenetwork, is considered one of the greatest mathematicians bestforexrebate medieval (476-1453 AD) Europe When he was a child, his extensive travels in the Mediterranean with his merchant father exposed him to many different arithmetic What is forex rebate accounting techniques He laid the foundation for business arithmetic and financial mathematics, but today he is mainly known for his Fibonacci numbers and number series In his book LiberAbaci he posed the rabbit problem, if a pair of rabbits were placed in a cage and each pair gave birth to a new pair each month, how many rabbits could be produced in a year (it would take two months for each pair to first breeding) The calculation of the above problem yields the Fibonacci sequence Fibonacci sequence   Forex basics Fibonacci numbers, add 233 to 377 to get 610 The important thing about this pattern is that the ratio of any number in the sequence to the previous number tends to be 1. cashback forex This number is commonly known as the golden ratio and is represented by the Greek letter φ for geometric figures; in geometry, a point exists on a straight line:a/b=a+b/a=φ=1.618 Similarly, this ratio exists for a (long side) and b (short side) of the golden rectangle: when placed next to a square with side a, the ratio of the longest side length (a+b) to the shortest side length (b) is the same as the ratio of the longer rectangle side length (b) to the shortest side length (b), i.e. the golden ratio point (1.618) Similarly, the Fibonacci rectangle consists of squares whose sides are the golden ratio of the Fibonacci number system structure (which also becomes The Golden Ratio) appears not only in geometry but also in architecture The ancient Greeks, including the Greek sculptor Phidias, believed that a ratio of length to width of approximately 1.618 was more pleasing to the eye Mathematics In mathematics, the Golden Ratio has the following unique properties:1/Φ+1=Φ=1/(Φ+1)Φ2=Φ+1& Phi;2–Φ-1=0 (solve the equation to find φ=1+sqrt(5)/2) Naturally surprisingly, flowers and plants also follow the Fibonacci sequence For example, butterfly lilies have three petals buttercups have five shiny yellow petals and flowers with petals of 8, 13, 21, 34 and so on human body It is also present in the human body For example, incisors and lateral The width of the incisors is in the golden ratio Fibonacci expansion As we have seen, dividing a number in the sequence by the previous number will give 1.618 In addition, dividing a number in the series by a number two places lower than it will give 2.618 In addition, dividing a number in the series by a number three places lower than it will give 4.236 These ratios are also known as Fibonacci expansion financial markets Fibonacci Fibonacci ratios, or more specifically extensions, can be used to help estimate potential price targets and take profit and stop loss levels. For example, by applying the Fibonacci tool at the top of a price action and dragging it down to the bottom of the swing, three price targets can be calculated: 1.618, 2.618 and 4.236. Applying the Fibonacci tool to a downtrend will also calculate three potential profit targets Add the Fibonacci tool to the bottom of the price action and drag it to the top to calculate the corresponding price targets: 1.618, 2.618 and 4.236 Stop Loss When it comes to Fibonacci profit levels, investors should remember that markets do not always move in the expected direction Sometimes they move in the opposite direction For example, after buying, one would expect the market to move higher. Of course, this is not always the case and experienced traders are well aware of this, which is why they set protective stops in case something unexpected happens. Nothing is 100% certain in the market, so it is highly recommended to set a stop loss to reduce the risk of loss Elliott Wave Fibonacci expansion is also an important principle of Elliotts wave theory You may recall that according to Elliotts theory, the market has a five-wave move wave 3 to wave 1 ratio may be about 1.618, 2.618 or 4.236 which is the wave most traders focus on Why? Why? Simply put, because according to this theory, wave 3 will not be the shortest wave, but usually the longest of waves 1, 3 and 5. The Fibonacci series and its corresponding ratios are ubiquitous in life, from mathematics to nature, from architecture to the human body, and although some may consider the existence of these ratios to be coincidental, it is acceptable for at least some traders to use the Fibonacci expansion when estimating potential price and P&L targets. The practice of  Forex Academy

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