0 used to describe methods of examining and predicting changes, for example of prices on the stock market, that use the mathematical relationships between numbers described by the Italian mathematician Fibonacci:
I’ve drawn a Fibonacci Price Projection tool starting with the March low, rising to the June high and then ending at the July low.
Note that the Fibonacci levels come from the golden ratio of 0.618 to 1; this means that in the foreign currency exchange they’re represented as a percentage of a currency’s price range.
Fibonacci relationships between the waves suggest that a drop to as low as 194p would not be surprising.
Traders want to predict how far the stock price is likely to continue moving. Fibonacci projection levels can help.
