The wonders of Fibonacci

Fibonacci was a mathematician Italy and he is best remembered by the world by the Fibonacci sequence, the definition of this sequence is that it was formed by a series of numbers where each number is the sum of the two previous numbers, 1, 1, 2, 3, 5, 8, 13 ... But in the case of currency trading what is more important for the forex trader is the fibonacci ratios derived from the sequence of numbers, namely 0.275,. 50.382,. 618, etc. The wonder of fibonacci happened at us, example below;

Comes with a series of fibonacci sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946...

Series of numbers is obtained by starting numbers 1 followed by 2 and then add 1 + 2 to get 3. Then, the addition of 2 + 3 to get a 5, and so on.
The interesting thing is when you calculate the ratio after the first couple of numbers it will always obtain the value decimal. 618
Example: 55/34 = 6176.
Example: 144/89 = 6179.

The next interesting thing
example: 34/(1 + 1 + 2 + 3 + 5 + 8 + 14 + 21 + 34) = 38
example: 89/(1 + 1 + 2 + 3 + 5 + 8 + 14 + 21 + 34 + 55 + 89) = 38

Fibonacci Retracement Levels
0.236, 0.382, 0.500, 0.618, 0.764

Fibonacci Extension Levels
0, 0.382, 0.618, 1.000, 1.382, 1.618

Fibonacci Retracement Levels
This level of functionality is as information Support Resistance, usually & trader will open buy/sell after the price touched the level points

Fibonacci Extension Levels
Traders generally use this level to determine the position of the point where they have to take the take profit.

The most important are:
1. Fibonacci Levels-it only works properly in the event of a trend
2. To be able to use fibonacci you must specify the swing/lowest price and highest range.