Fibonacci

Fibonacci

Lesson Attachments

Fibonacci is one of the most famous names in mathematics. He discovered a simple series of numbers that created ratios describing the natural proportions of thing in the universe.
For us Fibonacci is useful for measuring the distance of pullbacks, retracements and extensions of from previous lows or highs. First rule here is that Fibonacci tools works best when market is trending.

Fibonacci retracement levels:
– 38.2% – fast bounce. Usually after a strong push. Works nicely with flag pattern
– 50% – medium pullback
– 61.8% – golden ratio
– 78.6% – bigger pullback, works very good in smaller time frames
– -27% and -61% – profit target

Customized fibonacci retracement levels:
– 38.2% – fast bounce. Usually after a strong push. Works nicely with flag pattern
– 50% – medium pullback
– 61.8% – golden ratio
– 70.5% – “smart money” golden ratio
– 78.6% – bigger pullback, works very good in smaller time frames
– -27% and -61% – profit target

We are looking for an entry on levels 61.8, 70.5 and 78.6.

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