Fibonacci The Fibonacci sequence is where the prior 2 numbers are added together to get the next number in the sequence: 1,2,3,5,8,13,21,34,55…… on up to infinity. If you take a number and divide by the next highest number in the sequence, the answer nears .618 (8/13 = .6153, 13/21 = .619……) as the numbers get higher. As a percentage .618 = 61.8% If you take a number and divide by the number that is 2 places higher in the sequence, the answer nears .382 (8/21 = .3809, 13/34 = .3823……) […]

There are a number of candlestick patterns that one can become familiar with. Since there are so many patterns, we can simplify the process by recognizing some common themes in a majority of the patterns. First off, we need to recognize a doji candlestick. This occurs when the opening and closing price are basically the same price. The doji looks like a cross. The cross does not have to be in the middle of the candle. It can be in the upper portion or lower portion of the range of […]