In this lesson we will be learning about the Fibonacci numbers. Fibonacci was an Italian mathematician famous for discovering the Fibonacci sequence. This is a miraculous sequence in which every number is the sum of the two preceding numbers. The series of numbers begins with 0 and 1 and when visualized it produces a spiral. It’s not the numbers themselves that are important but the ratio between them which is called the golden ratio. The golden ratio is said to appear throughout nature. The sequence is used in computer science in Optics, in distance calculation and conversion and in economics. thus, we shall demonstrate the usage of the sequence in the Forex Market.

In this lesson we will give an example of how to apply the Fibonacci numbers to a financial instrument’s chart and consider the implications of this sort of analysis. The Fibonacci ratio is but one of many technical indicators and an extremely popular tool for predicting Market movements, especially price reversals.