Fibonacci indicato

Indicator used in technical analysis for stocks to try and forecast potential support levels and price targets, based on the height of the overall move and any wave patterns. This is used as many markets, after making long sustained moves in one direction, retrace a part of the move before continuing on further. Fibonacci was a 12th Century Italian mathematician who discovered the number series 1,1,2,3,5,8,13,21,34,55, where each successive number is the sum of the two previous numbers. The difference in ratio between these numbers into infinity is always 0.618, which is known as the "Golden Ratio". This number is one of the most important numbers in Technical Analysis and is always used as the most important retracement level.
The most commonly used numbers in this analysis are 61.8% (usually rounded off to 62%), 38% and 50%. This means that, in a strong trend, the minimum retracement is usually close to the 38% level and may go as far as the 62% level.