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The Relationship Between Fibonacci and Stock Market: Ways to Boost Trading Potential


Great financial security, luxury and comfortable way of life—these are only a few of the things that lure businessmen to venture into trading stocks. People make fortunes in trading, experienced and inexperienced traders alike, but one should understand that trading is not all about luck. It entails hard work, commitment, and more importantly, great amount of knowledge and skills. Thus, every trader studies the market and employs techniques and strategies in the process of decision making. One of the most reliable and proven techniques used by businessmen to study the stock market is Fibonacci analysis. 

Fibonacci and stock market have crossed paths over twenty five years ago. And since then, Fibonacci and stock market have remained strongly related with each other. The relationship between Fibonacci and stock market has been extensively tested through the course of time and countless traders can attest to the benefits of applying what seemed to be a simple and random numerical series, the Fibonacci. R.N. Elliot and W.D. Gann, the pioneers in technical analysis of the stock market, were the first to introduce the concept of Fibonacci and stock market. Their theory that shows that major market moves are described by a five-wave series, which helps in identifying key turning points in the stock market. Ratios of the Fibonacci numbers appear frequently enough in the highs and lows of the market, which strengthens the use of Fibonacci in trading and stock market analysis.

fibonacci and stock market moves

It is almost eight centuries now since Leonardo Pisano Fibonacci uncovered the secrets of the Fibonacci number sequence. Since then, its concept has been widely and permanently accepted and used in various fields of learning. In the 21st century, marketing analysts believed Fibonacci and stock market may also have a strong connection and that Fibonacci concepts can apply equally well to trading. Indeed, as analysts who believe in the Fibonacci and stock market link study the patterns and movements in the stock market, they have found that the Fibonacci number series create four important indicators for charting future stock market performance: the time lines, retracement points, fans and arcs. Resulting intersections these indicators create, outline future stock performance. The success of marketing analysts who study Fibonacci and stock market relationship and applied its concepts in actual trading is testament enough to the credibility of Fibonacci analysis as a tool or strategy in the assessment of the stock market.

There are many ways to learn the basic principles of Fibonacci and stock market. These can be found in many advance and modern books on trading and market analysis. There are also online courses that provide both the basics and the advance concepts on Fibonacci and stock market. These can be helpful for beginners and marketing experts alike. If you want to boost your trading potentials and ultimately your profit in trading, you may start by enrolling in these Fibonacci and stock market courses.

However, although the convincing relationship between Fibonacci and stock market is being based upon by many businessmen in the course of their trading business, Fibonacci and stock market concepts are not your sole means of ensuring biggest stock market gains and minimal losses. There are a lot more things to consider in trading than Fibonacci and stock market relations. Among these are sound financial management and good decision making skills. Whatever information you may have about the future trends and movements in trading through a study on Fibonacci and stock market, is useless if you are not able to practice good judgment skills and money management as well. These basics coupled by the principles of Fibonacci and stock market are sure to bring you to your success.

Learn to make Fibonacci and Stock Market work for you.