In this video, CryptoCred cover’s Fibonacci retracement and extension levels. – How to set up the Fibonacci retracement tool – How to identify swing high/swing lows & anchors for Fibonacci levels – Using Fibonacci levels to identify areas of support and resistance.
What are Fibonacci Levels?
Fibonacci numbers are used to create technical indicators using a mathematical sequence developed by the Italian mathematician, commonly referred to as “Fibonacci,” in the 13th century. The sequence of numbers, starting with zero and one, is created by adding the previous two numbers. For example, the early part of the sequence is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,144, 233, 377, and so on.
This sequence can then be broken down into ratios which some believe provide clues as to where a given financial market will move to.
The Fibonacci sequence is significant because of the so-called golden ratio of 1.618, or its inverse 0.618. In the Fibonacci sequence, any given number is approximately 1.618 times the preceding number, ignoring the first few numbers. Each number is also 0.618 of the number to the right of it, again ignoring the first few numbers in the sequence. The golden ratio is ubiquitous in nature where it describes everything from the number of veins in a leaf to the magnetic resonance of spins in cobalt niobate crystals.
Taken from Investopedia
CryptoCred is a technical trader, analyst and educator within the Crypto Community. His free educational content delivered across multiple platforms has seen him gain an impressive audience over the last couple of years.
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