Fibonacci Calculator---what???

Before we answer what the Fibonnaci Calculator is, we would first define the word fibonacci. Fibonnaci (pronounced fib-on-arch-ee ) is the nickname of a man named Leonardo of Pisa or Leonardo Pisano in Italian due to the fact that he was born in Pisa, Italy, where the world famous Leaning Tower is. "Filies Bonacci" which means "son of Bonacci", is where his nickname came from. He was considered to be the "greatest European mathematician of the Middle Ages". He introduced to Europe the modern Hindu-Arabic positional decimal system for manipulating and writing numbers (known as algorithm) and he also discovered the infamous Fibonacci numbers. This was the things he was best known for. One of his greatest contributions the mathematical world is the Fibonacci series. The series goes like this, 0, 1, 1, 2, 3, 5, 8,13,21,34, 55, 89, 144... and so on. Every number is equal to the sum of the preceding two. An approximation of the golden ratio results from the division of one number from the number before it. The ration would get closer to the irrational golden rule as two consecutive Fibonacci numbers get larger. During his life, he published some important texts, including Liber quadratorum in 1225, geometriae in 1220 and liber abbaci in1202.

Here is where it gets a little mind melting facts, In the Fibonacci series, there are no two Fn are adjacent and any positive number m could be represented uniquely as a sum of the Fibonacci numbers, where m is not exceeded by the greatest Fn in the expansion. Did you get that? If your nose is bleeding, take a minute off. Wipe that and let the information sink.

Now, we go to the calculator thing. One of the most powerful tools in determining the support and resistance of a currency trade is the Fibonacci Calculator. It empowers the traders to bounce targets and set profit. Instead of responding only at the instance of price changes, traders are now able to plan ahead by setting the profit and bounce targets.

Using the Fibonacci level, the maximum and minimum of prices could no be measured. To measure the Fibonacci retracement, you can use the high and low of the previous day. What is this fibonacci retracement? It's a technical analysis term that describes the likelihood that a financial asset's value would retrace a portion of an original move and would find support or resistance at the key Fibonacci levels before it resumes in the original direction or to put it simply, it's when prices move back or retrace the area it had moved at recently. By drawing a trendline in between two points then dividing the vertical distance by the key fibonacci ratios of 21.4%, 38.2%, 50%, 61.8%, and 78.6%., the fibonacci levels are created.

You would certainly stay on top of the pair your trading if you use this calculator. To protect you from certain looses and help you gain more profits, use this tool in a daily basis.

And that's about it. Hope you found what you were looking for in the article above.