Leonardo Pisano, better known by his nickname, Fibonacci, was an Italian mathematician born in Pisa in the 12th century. He is known to have discovered the Fibonacci numbers, said to be based upon observations of the Great Pyramid of Gizeh in Egypt. Fibonacci Numbers are a sequence of numbers where each successive number is the sum of the two previous numbers.

e.g. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.

It is the ratio of the Fibonacci sequence that is significant, rather than the actual numbers in the sequence. The quotient of the adjacent terms in the series possesses an amazing proportion, roughly 1.618, or its inverse 0.618. This proportion is known by many names: the golden ratio, the golden mean, PHI, and the divine proportion. The dimensional properties that adhere to the ratio of 1.618 occur repeatedly in nature. Examples are as various as mollusk shells and the shapes of gallaxies containing billions of stars.

When used in technical analysis, the golden ratio is most often translated into three percentages: – 38.2%, 50%, and 61.8%. However, other multiples can be used, such as 23.6%, 161.8%, 423%, and so on. The Fibonacci sequence is applied to finance in several ways: retracements, extensions, arcs, fans, and time zones

Forex Fibonacci Calculator v2.1 is a simple and useful tool that will help you to calculate Fibonacci extension and retracement levels for the market price. You will be able to anticipate market price moves and plan future trades according to the calculated results.

Note, that calculation formulas will differ for uptrend and downtrend moves, therefore use appropriate panel in the Calculator to input price values.

You can also find those formulas used for calculating Fibonacci levels on the program panel below.

In order to calculate Fibonacci levels with this program traders need to fill in High and Low values for the price and click on "Calculate!"

Tip: Change default field "Decimal places" to get desired number of decimal places for calculated results.

Fibonacci calculations can be used for any currency pair and with any time frame. However, the bigger the time frame, the more accurate results traders should expect applying Fibonacci calculations.

Forex Fibonacci Calculator must be used only as a helping(!) tool for planning future trades. No liability will be taken for any losses or unwanted results caused by following the calculations obtained by using Forex Fibonacci Calculator.

We wish you profitable trading and hope this tool will help you to make one step forward in achieving your trading goals.

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## Thursday, March 27, 2008

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