Fibonacci Numbers – What are Fibonacci Numbers in forex?

What are Fibonacci Numbers?

Definition of Fibonacci Numbers: These numbers are the series of numbers where every consecutive number is the total two earlier numbers like for instance, 1,3,8, 21….. The most important thing is that every number which is then divided by the subsequent number finally equates to illogical number that has connection with the natural world that include wave dynamics. These numbers are really useful in the currency and financial markets to create trading algorithms, plans and applications. Forex traders utilize the support from these numbers and resistance lines as a logical way to find the entry and exit for the trade as well as the placement of losses. Forex traders expect retracement. This is explained as the levels where the cost of a currency moves with consistency. For example, if a currency cost moves “A” in a direction and then comes back and moves “B” in the contrary direction, the movement of “B” is known as retracement. Some of the Forex traders consider the “Fibs” as the most reliable form of technical indicator.