The relationship between two numbers in the fibonacci
sequence. The sequence for the first three numbers is
0.618, 1.0, and 1.618. In general terms the fibonacci
series is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc.
Fibonacci Ratios and
Retracements
Fibonacci Ratios and Retracements can be applied both
to price and time, although it is more common to use
them on prices. The most common levels used in retracement
analysis are 61.8%, 38% and 50%. When a move starts
to reverse the 3 price levels are calculated (and drawn
using horizontal lines) using a movements low to high.
These retracement levels are then interpreted as likely
levels where counter moves will stop.
Fundamental Analysis
Analysis of a security which takes into consideration
sales, earnings, assets, etc.
