After we finished from the series of articles about the technical analysis , we will begin a new series about the technical indicators that will help you in technical analysis more ,you can take a look on the previous series about technical analysis through this link
Fibonacci
Fibonacci indicator one of indicators which we use it a lot in technical analysis , so we advice you to learn the basics of this indicator ,It's great and fantastic indicator
Leonard Fibonacci
Leonard Fibonacci is famous Italian mathematician and he discovered numbers series , through this series he could find a ratios it's called (Fibonacci ratios) ,these ratios describe the dimensions of things
: Fibonacci Ratios consisting of the below serial numbers
1,1,2,3,5,8,13,21,34,55,89,144
: These serial numbers that Fibonacci discovered from these numbers
3=1+2
Then 2+3 = 5
Then 3+5 = 8 ...ect
The Golden Ratio
After that Fibonacci work on measuring each number to the largest number which comes after it and he got on the rate = 0.618 , in example : in the case of division 34 /55 = 0.618 and when he measured the rate between alternative numbers he got on the rate 0.382
Example : 34/89 = 0.382 and that what we wanted to know Fibonacci ratios
All Golden Ratios
%61.8
%50.0
%38.2
Fibonacci Indicator Function
Fibonacci Indicator used in trying to predict the support areas where we could buy from it and to predict the resistance areas where we could sell from it , as well determining the goals to take profits or stop loss . all of this by drawing Fibonacci indicator on the chart because the fibo draws to us group of lines and levels automatically that probably that the price goes to it through the trading period
You're not required to make any calculations to determine these ratios manually because the metatrader will make this work your behalf , but we think you need to learn how to work by Fibonacci to be familiar to you
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