What Is the Fibonacci Sequence? The Fibonacci sequence is a sequence of numbers that increase steadily, each of which equals the sum of the two numbers before it.
What Is the Fibonacci Sequence?
Leonardo Fibonacci, an Italian mathematician, created the Fibonacci sequence in the 13th century. Starting with zero and one, the series of numbers increase slowly, with each number being equal to the sum of the two numbers before it.
Some traders think that technical analysis can be used by traders to apply the Fibonacci numbers and ratios that are produced by the sequence to finance.
How Can It Affect Trading Behavior?
People are pattern-spotters, and traders may easily compare patterns in charts using the Fibonacci sequence. Although the relationship between Fibonacci numbers and fundamental market forces has not been conclusively proven, markets are designed to respond to player beliefs, consequently, inventors sell because of Fibonacci analysis, and they tend to create a self-fulfilling prophecy that affects the market trends.
What Is the Fibonacci Sequence? How Can It Affect Trading Behavior? - Hopefully, this article can help you to get some knowledge.
