The Fibonacci sequence was created by the famous Italian mathematician Leonardo Fibonacci. This mathematical sequence, which represents consecutive numbers in nature, is used in the forex market as a tool to detect support and resistance points.
According to the mathematical relationships of the Fionacci sequence, the corrective levels of the Fibonacci sequence are located at 23.6%, 38.2%, 61.8%, 78.6%, which can be used in designing strategies and evaluating trading trends.
For example, the price of the EUR-USD currency pair at the price of 1.0653 can fall by 23.6% to the price of 0.8139, and this price is considered a resistance level for this currency pair based on the Fibonacci sequence.
By using the Fibonacci tool in forex, you can see different levels of retracements or corrections, and based on these lines, you can form trading strategies and prevent huge losses.
also Extension levels can also provide traders with more than 100% price levels in each wave so that they can make future price predictions.
To use the ITB Fibonacci calculator, it is enough for users to enter the following three parameters in the calculator:
By entering these information, the Fibonacci calculator will be able to provide users with Retracements and Extensions level information so that they can use these numbers to update their trading program.