What is the Fibonacci sequence?

A sequence of prime numbers A sequence of numbers where each number is the sum of the two preceding ones A sequence of numbers where each number is double the preceding one A sequence of random numbers

Who is credited with introducing Fibonacci numbers to the Western world?

Pythagoras Isaac Newton Leonardo Pisano Bogollo (Fibonacci) Albert Einstein

Approximately what is the Golden Ratio, often represented by the Greek letter Phi?

3.14159 1.618 2.718 0.618

How are Fibonacci retracements used in stock market analysis?

To predict the exact future price of a stock To identify potential levels of support and resistance To determine the best time to buy or sell options To calculate a company's intrinsic value

What are the commonly used Fibonacci retracement levels?

25%, 50%, 75% 33.3%, 66.6%, 100% 23.6%, 38.2%, 61.8% 10%, 20%, 30%

What is the first step in applying Fibonacci retracements to a stock chart?

Calculate the average trading volume Identify the most recent significant peak and trough Draw trendlines to identify support and resistance Apply technical indicators like moving averages