The Fibonacci sequence is a Numerical Series Where Every Number Is the Sum of the Previous Two: 1, 1, 2, 3, 5, 8, 13, 21, 34, Etc. The Sequence Of Numbers Has Some Interesting Properties. For Example Any Number In The Series Is A Multiple Of Approximately 1.618 Of Its Previous Number. This 1.618 Or If We Approximate It Them 1.62 Is Known As “Golden Ratio”. Also Known As “Phi”. Phi Was Described By Greeks As The “Dividing A Line In The Extreme And Mean Ratio” Means “Divine Proportion“. It Is Also Called The Golden Section, Golden Ratio And The Golden Mean. That Why It Is Most Important Ratio In Trading As It Helps To Find Out Levels Or Dividing Line Between Extreme Price And Normal Price.
In Technical Analysis, Various Studies Mean Inter-Relationship Of The Numbers In The Sequence Forms Which Are Used To Identify Price Trend And Trend Change.
The Most Popular And Practical Fibonacci Studies Are Fibonacci Retracements, Fibonacci Fan Lines, Fibonacci Arcs, And Fibonacci Time Zones And Fibonacci Trading Means Using These Popular Fibonacci Studies Or Tools In Professional Trading And Investing.