What exactly is Fibonacci? A Beginner's Essential Concept
Many people have heard of the Golden Ratio Fibonacci, but few truly understand how to use Fibonacci in trading. Although this tool is widely used, many traders only have a superficial understanding. Today, we will delve into this powerful auxiliary tool and explore how to maximize its effectiveness in different trading scenarios.
Origin and Calculation Logic of the Fibonacci Sequence
Fibonacci is a series of numbers following a specific pattern: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987…
The calculation method for this sequence is simple—each number is the sum of the two preceding ones:
- 0 + 1 = 1
- 1 + 1 = 2
- 1 + 2