Best Fibonacci calculator for 2020
Fibonacci retracements are the most widely used trading tool across the globe. Since the Fibonacci numbers or Fibonacci ratios are seen everywhere in nature, they hold great importance in trading the stock markets and forex markets. Fibonacci calculator or Fibonacci retracement calculator has been given below where you can calculate the Fibonacci levels very easily.
Fibonacci Calculator
What is Fibonacci?
Fibonacci is a number calculated by adding the two numbers. It is a sequence in which if we divide consecutive numbers, the ratio of division will be the same every time. This is a very impressive trading tool.
Fibonacci Retracement
In technical analysis, there is a concept of support and resistance levels. Stocks don’t move in a straight line, they always move in a certain direction and retrace back. Fibonacci retracements are support and resistance levels for a stock or currency pair. The major Fibonacci retracement levels are 38.2 %, 50% and 61.8%. There are some more minor Fibonacci retracement levels like 23.6%, 76.4 % and 88.6 %. These levels are natural support and resistance levels for the stocks.
The Fibonacci level 61.8% is known as golden level. When a stock is in good trend, it generally retraces back to this level. Even many things in nature are also arranged in the ratio of 0.618. It is very essential to support and resistance level for a stock.
Fibonacci Sequence or Fibonacci Series
Fibonacci Sequence is also known as the Fibonacci Series. This sequence was given by Leonardo Pisano Bigollo. A number in a Fibonacci sequence is obtained by adding the two previous numbers. For example :0,1,1,2,5,8,13,21,34,55,89,144……………….If we divide the consecutive numbers of the sequence, each result of the division roughly equals to 0.618. Therefore, 0.618 is known as a golden Fibonacci ratio.
Fibonacci Chart Software
There are many trading software available for technical analysis. Tradingview is the best web-based software for using Fibonacci retracement levels. There is a phenomenal tool available in the Tradingview charting software by which you can draw various Fibonacci retracement levels and the Fibonacci extension levels.