Fibonacci numbers, Fibonacci Trading, the use of the asset

Fibonacci use of raw materials trade helps Show the supplier market to find support and resistance.

Fibonacci or FIB-tool consists of a horizontal reference lines spaced at intervals determined by a mathematical formula, which are the subject of trade, the prices of the asset's continuing activity in the background.

When an asset's price movement of the clocks of the supplier, he looks for what is called the Fibonacci retracement.

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Let s say the Soybean futures you are trading and the price is moving higher.

You are looking for, you can see whether the price action and resistance of the line retraces or whether it does so, back to the reference line of the via Fibonacci.

Commodity trading using Fibonacci means these levels provide a FIB-commodity traders, which is a fixed reference point, which gives a strong indication of future price changes, in particular commodity.

In most cases, professional traders expect an ejected FIB levels, and so often will itself take the event.

What exactly are the Fibonacci numbers?

First, a little background as to why they are the so-called

Leonardo Fibonacci (c1170-120) was an Italian mathematician who, in his Childhood had developed a strong understanding of the Hindu-Arabic number system.

After extensive research he published a seminal work in the calculation of the book, called the Liber Abacci, introduced the concept of the number series in the West.

Over time these number series became known Fibonacci numbers.

Look at these numbers:

0 1 1 2 3 5 8 13 21 34 55 89 144 233 377 610 987 1597 "

How can we get this order?

Just take the left and add two numbers together, so we have: 0 + 1 = 1

Then, add the number of the previous number to refine the calculation, so we have:

1 + 1 = 2, here is the new number 2, and we can add the preceding number, 1 to 2. And 13 + 21 = 34.

Take the example of 377. 377 and its previous 233-number is the same as the 610.

Now, if we do not take any number of the order of the number and share of the previous, and same for the next number from the results we get, 1.618 and 0.618 accordingly.

For example, taking 55, we have 55/34 = 1.618 and 55/89 = 0.618.

This ratio is called the Divine proportion or Golden mean, and it is important, because it is a mathematical truth, the whole of time and space that holds.

Now, instead of taking the number on each side of the selected number, for example, 34, 89, 55, we are linked to the next but one number.

So we say we are on the take for 233, 610 and share 89 and 89, 233 gives 0.382, when dividing by the 233 610 shall again 0.382.

And now to take these two numbers calculated above: 0.618 + 0.382 = 1

If we repeat this process at the moment, but we will choose the next but, for example, 2-89, we Select 21 and 377 then we 89/377 = 0.236.

And if we take away from this number, 1-1: 0.236 = 0.764

You can see what we are building here?

It is the set of delimiters used in the 0 to 1 in the series derived from the Fibonacci.

The fifth number is between 0 and 1, which is 0.5, the half-point, and so we are now the size of the Fibonacci numbers, the set appears in most of the e-commerce software platforms, or who at least can be added to the trader if they so wish, in the drop-down menu at the top of the asset.

Five numbers are: 0.236, 0.382, 0.5, 0.618, 0.764

So here we have a tendency to lines that accurately, traders in view of the asset that the show had the support or resistance in the form of rows and on the basis of, for example, an asset that has been trading between the two levels of these will remain in a FIB.

Other tools and techniques available to the seller of the asset are indicators, such as the moving average, Japanese candle feet, support and resistance, and the relative strength index.

Using Fibonacci trading of the asset is only part of the answer to help you make sense of market movements and should be used as part of a comprehensive asset trading system to make the correct decisions.

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