As a great fan of technical analysis, I use Fibonacci indicators a lot. Even if you are a Forex beginner, you must have heard of Fibonacci by now. Let me introduce you to creator of Fibonacci numbers.
Leonardo Pisano Bigollo, planetary popular as Fibonacci, lived between c. 1170 – c. 1250. Born in Italy, Fibonacci is one of the greatest mathematicians in history of human kind. Many agree about the fact he is the most talented western mathematician of the Middle Ages.
How Fibonacci Became Mathematician
Fibonacci’s father was wealthy merchant and consul for a time. His father’s occupation made it possible for little Leonardo to travel a lot at early age. As a boy he visited Algeria where he learned Hindu-Arabic numerals.
It didn’t take long for little genius to realize how Hindu-Arabic arithmetic was far simpler and more efficient than Roman. It intrigued his mind and he could not get his thoughts off the mathematics from that moment on. He traveled all over the Mediterranean coast learning mathematics by master teachers of that time.
When he finally returned home, he was 32 years old and he wrote a book titles ‘Abacus Book’ to summarize all the things he learned while he was on the move, popularizing Hino-Arabic numerals in Europe.
What are Fibonacci numbers?
Fibonacci numbers or Fibonacci series or Fibonacci sequence are the numbers in the following integer sequence. Every following number is the sum of two previous numbers. Have a look at Fibonacci numbers:
Forex and Fibonacci
Fibonacci serials are successfully applied at all the financial markets. Fibonacci method is used by some of the most successful traders as the main indicators in their technical analyses, i.e. trading strategies.
You can find Fibonacci indicator in almost all the broking platform and there are plenty of quality custom Fibonacci indicators too. You can have a look at the most significant Fibonacci features while you can also read more about Fibonacci trading method.
Fibonacci Retracement Levels are:
0.382, 0.500, 0.618 — Those three levels are the most important
Fibonacci retracement levels are used as support and resistance levels.
Fibonacci Extension Levels are:
0.618, 1.000, 1.618 — three the most important levels
Fibonacci extension levels are used as profit taking levels.