Fibonacci retracements are one of the most popular tools employed by financial market traders to predict possible price movements in the future. The tool was developed from Fibonacci numbers sequence, which follows a certain sequence from zero and build up in a certain way each number is the sum of the two numbers before it. The Fibonacci sequence is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and this sequence goes on and one to infinity. There is a constant ratio of about 1.618 when you divide each number in the series by the one before it. For example, 55/34= 1.618, 89/55=1.618. The ratio 1.618 is ... (full story)