how can the fibonacci sequence affect trading behavior 
humans tend to identify patterns and traders easily equate patterns in charts through the fibonacci sequence it s unproven that fibonacci numbers relate to fundamental market forces however markets by design react to the beliefs of their players consequently if investors buy or sell because of fibonacci analysis they tend to create a self fulfilling prophecy that affects the market trends 2the bottom linethe fibonacci sequence is a set of steadily increasing numbers where each number is equal to the sum of the preceding two numbers many things in nature have dimensional properties that adhere to the golden ratio of 1 618 a quotient derived from the fibonacci sequence when applied to finance and trading investors apply the fibonacci sequence through four techniques including retracements arcs fans and time zones 