One tool that traders use in making their decisions is Fibonacci Retracement Indicator. From a trading perspective, there are many basic and advanced ways. Fibonacci numbers can assist the trader. The most significant relationship can be found by dividing one Fibonacci number by the next one in the series, which will give you the "Golden Ratio" of 0.618.
There are two primary ways to use Fibonacci analysis in trading. One is to identify or confirm support or resistance levels, and the other is to help identify price targets. Frequently, a trader will look at a market and realize a significant level of support or resistance was broken. Fibonacci analysis can be beneficial in providing information to a trader's research and strategy.
