Fibonacci In Trading

Discussion in 'Fibonacci Trading' started by Angela_Riplay, Oct 20, 2015.

  1. Angela_Riplay

    Angela_Riplay Forum Member

    Sep 9, 2015
    Likes Received:
    The magic of Fibonacci numbers is found in nature and biology. Designers, architects, and even computer scientists apply Fibonacci sequence in their work.

    It is not surprising that, somewhere down the road, traders decided to give Fibonacci a chance. However, instead of using the Fibonacci numbers directly, traders focused on the Fibonacci ratios.

    34/55 = 0.618 (Divide by next number)
    34/89 = 0.382 (Divide by the next next number)
    34/144 = 0.236 (Divide by the next next next number)

    From these ratios, we got a whole host of Fibonacci trading techniques. These techniques have grown in application and complexity. And it is definitely possible to build a trading strategy completely around Fibonacci trading techniques.

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