One thing are used a lot by Fores traders in Forex market is called Fibonacci ratios. Based on Fibonacci, these ratios are just a fraction of studies. For discovering a simple number series that created ratios which described the proportions of things that exist in the universe, Leonardo Fibonacci, a Italian mathematician, became famous since his age until now. They are the series of numbers starts with two ones, and then the next number is the sum of two previous numbers. Traders use these ratios to make up a large percentage of subjects in Forex. For contributing to develop numbers, he became the greatest mathematician.
Support and resistance levels are the reference which used by traders applying Fibonacci retracement levels. Based on Fibonacci, traders all see the same support and resistance levels, so they may make the same decision as sell and buy orders on the levels to place stops or enter trades. To take profit taking level, Forex traders will use Fibonacci extension levels. Fibonacci extension level and retracement level are included in almost software which is used for Forex traders.
In his age, Leonardo was famous with all of his creative thing in art and mathematics, and its also famous now in Forex trading. To improve trader ability to make an informed decision when they are trading on the Forex market, they need to apply Fibonacci principles when dealing with the Forex trading maket.
If Fibonacci doesn’t exist then Forex trading might not here today and the world would be a different version. Leonardo Fibonacci has made a very important contribution to the world of market trading, and his contribution is used in the Forex market on a daily basis by hundreds of thousands of traders.