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The Fibonacci retracement instrument is an extremely famous device used to recognize price-levels where a price correction may end. This prompts the continuation of the basic trend. Price corrections are counter-trend price moves during uptrend and downtrends which give price-charts their trademark crisscross example. Leonardo Fibonacci was a well known Italian mathematician from the Middle Ages, known for the Fibonacci arrangement of numbers which goes this way: 1,1,2,3,5,8,13,21,34… If you isolate any number in the grouping with its successor, you'll generally get a similar result: 0.618. This ratio, otherwise called the Golden Ratio, is very regular and happens normally even in the human body.
 

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