Google And Fibonacci

These two retracement levels are derived from a number series known as the Fibonacci numbers. This series begins with the number 1 and adds each two succeeding numbers together (e.g., 1+1=2, 1+2=3, and so on). The most commonly used Fibonacci numbers are 1, 2, 3, 5, 8, 13, 21, 24, 55, and 89. Fibonacci ratios are very important. The two most important are 38 percent and 62 percent. Each Fibonacci number is approximately 62 percent of the next higher number (e.g., 5/8 = .625); hence, the 62 percent retracement level. 38 is the inverse of 62 (100-62 = 38); hence, the 38 percent retracement number. This is probably all you need to know at this point about these numbers. They are very popular among professional traders and are widely used to determine how far corrections will retrace.