The Secret To Forex Trading Success With Fibonacci Ratios

Leonardo of Pisa, is a mathematician who discovered the series "Fibonacci". Fibonacci appeared at the time he was breeding rabbits and find out how many pairs of rabbits he had at the end of the year based on the breeding behavior of rabbits. This is just nonsense that no approach to the FOREX.

Many people regard as the Fibonacci sequence of mathematical abstraction, but it is rooted in the real world math applications. Fibonacci sequence is useful to make us aware and then describe the hidden patterns of the people around us every day.

Then, how could this be applied to investments? Smart investors can quickly to understand that there are hidden patterns in the stock market based on the mass of investors behavior. "Buy low and sell high" and "The best time to buy is when there is blood in the streets" are but two investment aphorisms not only works, but also from the hidden patterns of understanding of investment markets.

The reason that the pattern of investment market very well, and the hidden is because they are "close", and can not be seen. Day after day, hour to hour fluctuations in investment markets can not be predicted with accuracy. But given the overall trends that lasted for a period of time would be longer.

Using the Fibonacci sequence involves a series of numbers. Each of the following phone number is the sum of the two previous numbers. This progress like this 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and becomes infinite. There is a number in that number. For example, take a number; is approximately 1.618 times the previous number. Ancient Greeks found reprehensive amount of 1.618 golden ratio which is the highest essence of balance. This balance is the fundamental strategy of profitable investment