Financial Technical Analysis Crypto Narrative Chapter 6 Fibonacci Golden Ratios

It is stated in many investing and trading articles that Fibonacci golden ratios are used to find hidden supports and resistances. The most frequently used Fibonacci tools in trading are Fibonacci retracement and extension or expansion. Fibonacci retracement is used to predict how much a corrective phase will or the term most cryptocurrency supporters, how far will the dip be. Fibonacci extension is used to predict how low the bottom will be and on the other side, how high the top will be. Before directly discussing Fibonacci golden ratios for financial technical analysis, we will summarize the theory behind Fibonacci golden ratios.

The Fibonacci Numbers

In mathematic, Fibonacci are magic numbers. In natural science, Fibonacci numbers appears very frequently such as the number of leaves in plants and the number of petals in flowers as stated in Laura Resta’s thesis in biomathematics entitled The Fibonacci sequence in phyllotaxis. We can see the above image of 1,2,3,5,8,13 where the sequence are based on the sum of the previous two numbers (3=1+2, 5=2+3, 8=3+5, 13=8+5) founded by Leonardo Fibonacci. Now…