What are the applications of Fibonacci Numbers?
Fibonacci series has been applied in numerous mathematical and scientific studies. Many theorems of math and science have evolved on the basis of Fibonacci numbers which have further led to new discoveries. Fibonacci numbers have also penetrated in technical analysis applied to the financial markets. Participants in stock markets and forex markets extensively use Fibonacci numbers for trading algorithms and strategies. Fibonacci Numbers in Technical Analysis Golden ratio of 0.618 is the most important number for technical analysts. In addition to 0.618, 0.382 and 0.5 are two other ratios of Fibonacci series that are considered as powerful figures in the technical analysis. Fibonacci numbers and ratios are commonly used in the technical analysis to decide support and resistance levels. Traders use these ratios to ascertain the retracement levels. Based on the retracement levels and the trends, the traders initiate their buy or sell trades. Fibonacci ratios are also sometimes used to fin
