Technical Indicator

Hi,
Fibonacci Series and Fibonacci retracement
Fibonacci series is the sequence of numbers in which each number is the sum of the previous two numbers in the sequence. Fibonacci Series is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144,………….
Golden Mean is 1.618 Logic behind golden mean is the ratio of two consecutive numbers in fibonacci series is same for all the two consecutive numbers.
Example 1: 21/13=1.618 Example 2: 144/89=1.618

Fibonacci Retracements are ratios used to identify potential reversal levels. The most popular Fibonacci Retracements ratios are 23.6%, 38.2% and 61.8%.
These ratios are found using the Fibonacci sequence
1. 61.8% – dividing one number in the series by the number that follows it. For example: 8/13 = 0.6153
2. 38.2% – ratio is found by dividing one number in the series by the number that is found two places to the right.
3. 23.6% ratio is found by dividing one number in the series by the number that is three places to the right.

Fibonacci Retracements used to identify support and resistance zones during the correction of the trend

In bullish retracement
Use the Fibonacci retracement tool to connect the trends bottom & top, by doing this Fibonacci retracement levels will be plotted in the chart.
When the price retraces from the peak then fibonacci retracement levels will act as a support zone.