Stocks & Commodities V. 30:13 (12-22): Fibonacci Rules To Get Ahead Of The Trend by Ryan Henry

Fibonacci Rules To Get Ahead Of The Trend by Ryan Henry

Three To Make It Easy

Getting a feel for when market trends begin and end is a great skill to have. Gain some insight into market price moves using Fibonacci rules.

Fibonacci mathematics is a massively underrated stock market trading tool. It can provide incredible insight into the true nature of market moves, determine likely targets for the end of trending and countertrending moves, and even provide reasonable expectations for the amount of time a move will take before it is complete. Most important, it provides us with a reliable and scientific way to help determine high-probability market outcomes, and in this game that is the best you will ever do.

In this article, I will provide you with the most critical elements of Fibonacci mathematics as it applies to the stock market and how you can use three Fibonacci rules in your own trading right away. I will start with a background on the man himself and how Fibonacci mathematics came to be.

Leonardo of Pisa

Leonardo of Pisa, better known as Fibonacci, was a 13th-century Italian mathematician who spent the first 30 years of his life traveling and the last 40 writing game-changing mathematical texts. One of his biggest and most famous contributions to math was the introduction to Europe of Arabic numerals, which are the numbers we use today, as a replacement for Roman numerals. He also made major contributions to accounting, such as how to calculate the profit created by a transaction, and how to convert between various currencies. Obviously, all of these contributions have had a huge impact on the very essence of today’s stock market, but none were as profound as his discovery of the Fibonacci sequence and the golden ratio.