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Fibonacci Retracements and Extensions

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Definition of 'Fibonacci Retracements and Extensions'

The Fibonacci sequence is also referred to as the Golden Spiral and in its basic form uses the fractions 0.382 and 0.618 (1 - 0.382) in various multiples.

The Fibonacci sequence starts 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946, 17711, 28657, 46368, 75025... and continues by adding the last two numbers to get the next number. This can easily be illustrated by starting at the beginning of the sequence and confirming that any two numbers sum to the next number.

The Daily Notes pages calculate the most common Fibonacci retracements and extensions that traders use in day trading the markets.

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