Fibonacci Numbers in Math and Trading
Some things look too precise to be random. Spirals in nature. Price pivots on a chart. Fibonacci numbers show up in both. They aren’t magic but structure.
Some things look too precise to be random. Spirals in nature. Price pivots on a chart. Fibonacci numbers show up in both. They aren’t magic but structure. And structure matters—especially when you’re building models that need to survive noise.
Fibonacci levels are a cornerstone of technical analysis, widely used by traders to identify support and resistance zones based on the Fibonacci sequence.
In markets, price action often behaves like a wave of probabilities, oscillating between these key levels. Much like an electron in a quantum interference pattern is more likely to land at specific points, prices tend to react at Fibonacci levels due to their harmonic relationship with broader market structure.
This connection underpins the effectiveness of tools like Fibonacci retracements: just as Fibonacci ratios predict high-probability zones in wave functions, they help forecast price levels where markets are likely to pause, reverse, or accelerate.