Forex encyclopedia

From this article you will learn the history of Fibonacci numbers and, in particular, their role in chart analysis of the Forex market. Leonardo Fibonacci (Leonardo Pisano) – is a famous Italian mathematician who lived in XIII century. He got acknowledgment as a great person following to publication of his work “Liber Abaci”. The book was issues in 1202, the second revised edition – in 1228, which remained till our time. His work introduced Hindu-Arabic number system to Europeans. It greatly contributed to such branches of science as physics, maths, astronomy, biology etc. Fibonacci sequence allows to interpret various natural phenomenon and forms, whereas “golden ration”, according to Johannes Kepler, is one of the treasuries of geometry.

Tirone levels represent a sequence of several horizontal levels decreasing in succession. This method is used for determining support and resistance levels within trading range at definite moment of time. Tirone levels were elaborated by John Tirone. In practice, TL are applied to improve visual reception of price movement. Also through these method of technical analysis one can generate signals for opening positions. For example, if price reaches TL from upward – it is an alert for purchase and a signal for sale is received, when prices approaches from bottom.