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Fibonacci analysis is useful for forex traders to identify hidden support and resistance levels. There are two ways to apply Fibonacci methods to the forex market: Historical analysis and trade preparation. The first examines long-term trends in the forex market to identify the levels that trigger major trend changes.
Fibonacci numbers can also be used to define a spiral and are of interest to biologists and physicists because they are frequently observed in various natural objects and phenomena. The branching patterns in trees and leaves, for example, and the distribution of seeds in a raspberry reflect the Fibonacci sequence.
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