How to Use Fibonacci Mathematical Formula to Make Money in Forex

In this article, I would like to discuss Fibonacci. 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 this mathematical numbers or sequences.

Fibonacci simply discovered a mathematical pattern that exists all through nature. It exists in how a flower grows, or how a tree develops and how your child grows, in the proportions of the finger and the arms, and legs in any human being. It exists in the universe, in how the planets are organized.

Literally, it's a mathematical sequence of number that exists in all creations, no matter where you find it. Amazingly enough, even though you might think that this mathematical numbers or sequence would apply only to physical creations, it seems to apply also human emotions and patterns of behaviour.

When you apply Fibonacci numbers to the market place, essentially, you are 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 were to use Fibonacci in the market place, you can have a fabulous, fabulous tool. In the trading world, there are certain tools, on your trade platforms and charts - Fibonacci retracement tool, Fibonacci expansion tool, the Fan tool etc. These tools allow you to use Fibonacci's mathematical sequences and numbers, and how you map out destination points or target points in the market.

Now, I've spoken about Elliot wave principle in the market, if you haven't heard that you may read my previous article that focuses on that. When you think about Fibonacci's mathematical numbers here, use them in the market place and then combine them together with Elliot wave principle, the two are fabulous by themselves, but when you work with that combination together, they are like a tornado in a box. Those things are fantastic.

I call Fibonacci, the navigator. Elliot wave is the vehicle; Fibonacci is going to tell the vehicle where it going to go, the destination points where it's going to land, and it will give you 2 or 3 very strong targets that you can anticipate in your forecast—a way of progression, a trend pattern.

Fibonacci is absolutely essential to learn how to use and to learn how to use it professionally, together with Elliot wave, when you become an Elliotician. You are going to be the driver of the seat and you are going to utilise your navigator sitting with you called Fibonacci, and you learn to work those together like they are one.

Quote of the Day: "Nothing good comes easy."—Bongo Sikwe