Learn Fibonacci for forex trading

The Fibonacci numbers are the following sequence of numbers:

The first two Fibonacci numbers are 0 and 1, and each remaining number is the sum of the previous two:

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The ratio of 2 numbers in sequence approaches 1.618 as the series progresses. In forex analysis, the percentages derived from the Fibonacci sequence are 61.8%, 38.2% (100%-61.8%) and 50%. You can consider (38.2%, 50%, and 61.8%) as resistance level. For example look currency pair that drops -38.2%. If they stabilizes around that level it can be considered as support level and it probably will go up. However, if it falls below that point, it is likely to fall all the way to the next support level, which is 50%.

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