![]() ![]() ![]() As you move up the sequence, say 34/55, the ratio approaches the number 0.618 or 61.8%. The sequence of numbers is ultimately less significant than the ratio from dividing any adjacent number into the other-for example, 8/13 = 0.615. The ” Fibonacci sequence” represents a series of numbers (beginning with 1) in which a given number is equal to the sum of the two preceding numbers:ġ, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, etc.įibonacci found that creating squares using the numbers in the sequence for width results in a spiral. Many technical traders use what’s known as a Fibonacci retracement to identify support and resistance price levels. Leonardo Fibonacci was a mathematician who worked on the “golden ratio” and developed the Fibonacci sequence. Understand how Fibonacci levels can help make trading decisions.Fibonacci retracement levels may be used to identify support and resistance levels.Learn how to create Fibonacci retracement levels on stock charts. ![]()
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