In mathematics, the Fibonacci numbers, commonly denoted Fn form a sequence, called the Fibonacci sequence, such that each number is the sum of the two preceding ones, starting from 0 and 1.
In finance, Fibonacci retracement is a method of technical analysis for determining support and resistance levels. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.
A Fibonacci retracement is a popular tool that technical traders use to help identify strategic places for transactions, stop losses or target prices to help traders get in at a good price. It is one of the best stock market trading tools. Although Fibonacci values look very simple and easy they’re a very powerful tool for profitable traders.