Learn Fibonacci Theory

Leonardo Fibonacci was born around the year 1170 of a rich merchant, Italy named Guglielmo fibonacci.

As a young boy, Fibonacci was very fond of mathematics and counting. He learned about the system of numerals and Arabic, where he got that simpler compared to the Roman system, as well as more easily in the calculation. And at age 32 in 1202 he began to introduce a system of numbers (Hindi-Arabic) to the plains of Europe. Fibonacci also introduced a system of arithmetic which we use up to now, the base 10 digits, blank, comma, decimal and fractions.

And many more models count and a mathematical equation discovered by fibonacci. Among them are then most known is the so-called fibonacci sequence.

Fibonacci sequence appears with series: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ...

Set of numbers is obtained by starting the number 1 followed by 2 and then adding 1 + 2 to get 3. Then, the addition of 2 + 3 to get 5, and so on.
The interesting thing is when you calculate the ratio after the first few numbers then will always be obtained the value of the decimal. 618

example: 55/34 = 6,156.
example: 144/89 =. 6179

It is interesting next

example: 34/(1 + 1 + 2 + 3 + 5 + 8 + 13 + 17 + 34) = 38
example: 89/(1 + 1 + 2 + 3 + 5 + 8 + 16 + 23 + 33 + 55 + 89) = 38

From the series found by fibonacci is accidentally appear in real in nature, realized or not if we count the branches of a tree it will come by fibonacci numbers, as well as on the number of petals of a flower, for example the flower aster (average have 34 or 35 petals, even up to 89).

See the interesting phenomenon of the fibonacci sequence, then this test applied in forex trading. And once counted and formulated (you don't need to look it up, submit to the expert) then get the value of the


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

This is such a popular Fibonacci to traders. So now it's almost all existing trading platform, fibonacci calculator facilities that will automatically calculate and stay put.

Fibonacci Retracement Levels
This is the function of the level as information Support & Resistance, which usually traders will open buy/sell once the price touches the level points

Fibonacci Extension Levels
The Trader generally uses this to determine the level of the position of the point where they must take the take profit.

Some things to note are:
* Fibonacci Level only works well when a trend
* To be able to use the fibonacci you must determine the swing/lowest price range and the highest.


Please read the next post: sample exercise Fibonacci Theory

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