What is fibonacci and why is it imprtant in trading?

In you are already in trading and using technical analysis, you might have heard something about Fibonacci. In this section we will explain you what Fibonacci is and we will show you how to use Fibonacci for your profitable trading’s.

What is Fibonacci?

The Fibonacci numbers are based upon the Fibonacci sequence that was discovered by Leonardo de Fibonacci de Pisa in the 13th century. In the trading the markets, the Fibonacci numbers are being used as ratios to measure retracements and extensions of a markets up and down movement to provide additional levels of support or resistance and hence potential turning points.