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Leonardo of Pisa, nicknamed Fibonacci was born around 1175 in Italy . Fibonacci was one of the greatest mathematicians of the 13th century.

Fibonacci is known for discovering a series of numbers that was called after him the Fibonacci numbers or the Fibonacci sequence.

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233 …

In the Fibonacci sequence apiece term, except for the first two, is the sum of the two previous terms for example, 2+3=5, 3+5=8.

Fibonacci and the Golden Ratio

Fibonacci also found that dividing apiece number in this sequence by the one that precedes it produces a ratio of about 1.618 after the first four calculations. This number is known as the golden ratio. For example 233/144=1.618

Fibonacci Levels

The ratio between any number and the next higher number approaches 0.618 for example 21/34=0.6176

Also, The ratio between any number and the two next higher number approaches 0.382 for example 89/233=0.3819

These ratios usually rounded off to 1.62, 0.62 and 0.38 and the percent of these ratios called Fibonacci levels.

Fibonacci Indicators

Fibonacci indicators help traders to expect support and resistance levels along with price targets.

Trading software computes and draws indicators automatically and you should learn how to use them.

There are many Fibonacci indicators like the following:

a. Fibonacci Arc

b. Fibonacci Fan

c. Fibonacci Retracement

d. Fibonacci Extensions

e. Fibonacci Clusters

f. Fibonacci Time Zones

g. Fibonacci Channel

Fibonacci Arcs are drawn for predicting support and resistance levels; those are three curves that usually drawn between the high and trough in a given period.

Fibonacci Fans are three straight lines that used for forecasting support or resistance areas.

Fibonacci Retracements are based on a trendline drawn between a significant trough and high. If the trend is rising, the retracement lines will descend from 100% to 0%. If the trendline is falling, the retracement lines will ascend from 0% to 100%.

For more information with images read this page: Fibonacci Sequences in Technical Analysis

For people starting out investing on the Forex market, Good Forex strategies are important.

So, what do you need to do to develop a good trading strategy on forex? Well a good basic understanding of how the forex market works is obviously important. Without that you can't hope to comprehend how you can develop an effective trading style.

Because the forex market is large (3 trillion dollars a day) it is a –place where anyone feels they have the prospect of making money. Then, you hear that 95% of people who take a trip into the forex market place – lose their money and give up. Actually this is true of so many other aspects of life. Most people are looking for a cheap and simple way to acquire a living. We actually know it doesn’t work, don’t we?

The truth is, if you want to trade on forex, don’t bother unless you are prepared to learn how it works. You have to develop your own successful strategies. If you are not prepared to learn trading methods and techniques, and test ideas learnt from others or developed by yourself, then unless you are incredibly lucky, you have no chance of success.

So where do you start? By, first of all, signing up to a good broker. One who provides online training, helpdesk support and grants you to trade using small amounts. Yes, a practise statement is OK, but, will you make the same trading decisions if there is no money at stake. If a practise statement gives you $100,000 to trade, will you treat it seriously? How about if you were actually trading with $25 of your own money? The truth is, for the home investor, playing around with $100,000 is like playing a video game. If you crash and burn then you will laugh about it. If you have to go and tell your wife or partner that you just wasted 25 real dollars, then that’s a whole different story.

The moral of this story is that unless you comprehend how forex, and trading on forex, really works then you can't develop your own trading style. The good news is that, for anyone who was OK at high school math, forex trading is not complicated.

Getting the right broker, and then taking the training seriously can't be a bad thing. It is up to you.