Why Are Traders Using Fibonacci?
In the foreign exchange market, many professional traders rely on a classic technical analysis tool—Fibonacci indicators. The reason this tool is so popular is not just because it sounds mysterious, but because it is based on a mathematical pattern that is prevalent in both nature and markets.
The Fibonacci ratio originates from a simple yet powerful sequence rule: each number is the sum of the two preceding ones. When traders use these derived ratios to analyze asset price movements, they often identify key turning points in the market. Therefore, identifying support and resistance levels has become the foundation of many trading strategies.
Mysterious Mathematical Secrets: 0, 1, 1, 2, 3, 5, 8…
The Fibonacci sequence may seem simple, but it hides the secrets of the financial markets. The sequence is as follows:
0, 1, 1, 2, 3, 5, 8,