Fibonacci numbers have many uses in arts, music, biology and architecture, as well as followers among investors, for example, use Fibonacci numbers to put Stop loss commands.
Two of the most significant levels of Fibonacci retracement in Triding are 38.2% and 62.8%. While the other important percentage of return is 75%, 50%, and 33%. For example, if the trend (Trend) starts at zero and moves to 100, then it returns to 50, it is considered as a 50% return. Similarly, similar levels can be applied to a bullish market, and then the market will experience a bullish upside down.
There is a very deep connection between Fibonacci numbers and Tridings, since this links the levels of the StopLas. An investor can put a stop-top on the top or bottom of an area, if the three levels of Fibonacci prices fall into a relatively narrow area. In addition, a Fibonacci number can help identify the best stop point, for example, if the support area is broken and the price moves down the bottom, the purpose and reason of the investor is canceled and the position is closed. While Fibonacci returns show you a predetermined exit point.https://arabyfx.com/viewtopic.php?f=3&t=8462
In addition, Fibonacci numbers give the size of the positions, depending on your riskiness in each transaction. Also, when a pattern is completed in contrast to a Fibonacci price range, Fibonacci numbers define profit goals for the purpose of collecting partial profits or limiting the level of the stop-las.https://www.arabyfx.com/viewtopic.php?f=7&t=8254
One of the biggest advantages of Fibonacci numbers and the golden ratio of investing is that you can not only define the stops of lasts to exit the market but also be able to identify the goals of profit.