Using Fibonacci Numbers in FOREX Trading

I’d like to talk to you about Fibonacci. Now, Fibonacci is an Italian mathematician. Fibonacci is his name and the sequence of mathematical numbers is the discovery that is so commonly attributed to his name. He wasn’t just a mathematician who discovered or created these mathematical numbers or sequences. Fibonacci simply discovered a mathematical pattern that exists all through nature. It is manifested in how a flower grows, and how a tree develops, and how your child grows, and the proportions of your fingers and the arms and legs on any human being. It exists in the universe and how the planets are organized.  Literally, it’s a mathematical sequence of numbers that exist in all creation. No matter where you look, you’ll find it. Amazingly enough, even though you might think that these mathematical sequences of numbers would apply only to physical creation, it seems to apply also to human emotion and patterns of behavior.  

When you apply Fibonacci numbers to the market place, essentially you’re watching how the emotions that drive the market from fundamental events are also reaching certain Fibonacci numbers and destination points. I still do not comprehend how and why that is. But it is, and if you learn to use Fibonacci in the market place you’re going to have a fabulous tool.  

In the trading world there are certain tools on your trade platforms and charts like the Fibonacci retracement tool, the Fibonacci expansion tool, there’s a fan tool etc. These tools allow you to use Fibonacci’s mathematical sequence of numbers in how you map out destination points or target points in the market. Now I’ve spoken about Elliott Wave Principle in the market, if you haven’t heard that you may want to read one of my other hubs that focuses in on that.  

When you think about Fibonacci mathematical numbers here use in the market place and them combine them together with the Elliott Wave Principle, the two are fabulous by themselves, but when you work with that combination together they’re like a tornado in a box. Those things are fantastic. I call Fibonacci the navigator where Elliott Wave is the vehicle. Fibonacci is telling the vehicle where it’s going to go, the destination points to where it’s going to land, and it will give you two or three very strong targets that you can anticipate in your forecast of a wave progression, a trend pattern.  

Fibonacci is absolutely essential to learn how to use, and to learn how to use it professionally together with Elliott Wave when you become an Elliottician. You’re going to be the driver of the seat, and you’re going to have a navigator sitting next to you called Fibonacci and you learn to work those two together like they’re one.