The all-winning indicator - the use and techniques of Fibonacci - the golden ratio!
Everyone knows that to predict market trends, we can basically only rely on fundamental information or various indicators and theories for analysis. The most commonly used are indicators, as they are tangible and visible. Among these indicators, some have high accuracy in predicting market conditions; learning them will help you find direction in trading and prevent losses. The most frequently used by seasoned traders is Fibonacci - the golden ratio!
Why is that?
Because it is extremely simple, you don't even need to know the complex logic behind it; you only need to know how to use it, and it has a magical predictive effect. Learning to use it will help you easily find direction. Now let's take a detailed look at the practical application of Fibonacci - the golden ratio in trading! 01 How did the Fibonacci sequence come about?
Fibonacci, a genius number researcher from Italy in the 12th century, was fascinated by numbers at a time when Roman and Arabic numerals were sweeping across Europe. He became famous worldwide for inventing the Fibonacci sequence.
Please look at the sequence:
1 + 1 = 2, 13 + 21 = 34
1 + 2 = 3, 21 + 34 = 55
2 + 3 = 5, 34 + 55 = 89
3 + 5 = 8, 55 + 89 = 144
5 + 8 = 13, 89 + 144 = 233
18 + 13 = 21, 144 + 233 = 377
First, derive a set of data from above: 1, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377...
Next, casually take a set of data: 34 + 55 = 89. Performing division gives several the same and important data:
55 divided by 34 equals 1.618.
34 divided by 55 equals 0.618.
34 divided by 89 equals 0.382.
34 divided by 144 equals 0.236.
No matter which number you take from the array, you will get these several numbers, so you must remember these 6 numbers:
0.236, 0.382, 0.50, 0.618, 0.786, 1.27, 1.618.
You might be wondering: where do 0.50, 0.786, and 1.27 come from?
Dividing the sum of three numbers by 2 gives 0.5, 0.786 is the square root of 0.618, and 1.27 is the square root of 1.618.
In foreign exchange trading, numbers like 23.6%, 38.2%, 50%, and 61.8% are derived from the Fibonacci sequence. These numbers represent important reversal points in the market.
V God has been navigating the market for many years, deeply understanding the opportunities and pitfalls within. If your investment is not going well and you feel unwilling to accept losses, you can contact V God by leaving '999' in the comment section.
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