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Fibonacci Cycle Fibonacci number is a numerical series depicting the nature’s expansion,
which is also the principle of market movement in terms of price and time
cycle. The Fibonacci number starts with 1, 1 plus 1 equals 2, 1 plus 2 equals
3, 2 plus 3 equals 5, 3 plus 5 equals 8, etc. The Fibonacci number can be interpreted as the numerical expansion
based on the “Golden Ratio” 1.618 as well as the numerical contraction based
on the ratio of 0.618. See table below.
Sometimes, market
time cycle also moves in tandem with Fibonacci number in terms of minutes,
hours, days,
weeks, months and years. See
Chart below.
Using Fibonacci
ratio 1.618, we can project the market price target of market actions. Fibonacci ratio 0.618 is instrumental
in calculating the market reactions price target. See below.
In the same way,
Fibonacci ratio 1.618 is commonly used to project future time reversal point
of market price. Fibonacci ratio 0.618
is used for timing of the end of market correction. See below.
Books Recommended:
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