Forex chart with fibonacci
Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If forex chart with fibonacci are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.
It has got special importance as it is very commonly found in the nature and human creation. Let me explain you how fibonacci spiral is formed, following mathematical theories. A fibonacci spiral is developed through the corners of squares. And the areas of the squares maintain a fibonacci series. In the illustration below, we can see the areas of the first 2 squires are 1, and the area of the second squire is 2, likewise the areas of the squares maintain 1,1,2,3,5,8,13,21. When a new square is added, it creates a rectangle which is called golden rectangle because the length and width of the rectangle are in golden ratio, 1. You can read more about golden ratio and golden rectangle here.
Traders over years showed interest on golden spiral because it is very commonly found in nature and human creation, and it closely tied with the fibonacci series and the magic ratio, 1. In image below, you can see some example of existence of golden spiral in nature and human creation. Let me explain how the golden spiral can be used to trade in financial market. So many books of technical analysis explained about trading with golden spiral. To draw a golden spiral on the price chart of financial market, traders need to find an ABC pattern. A golden spiral generally has a center that is also the starting point. But in technical analysis, the center and starting point of golden spiral are two different points.