The markets are constantly moving in different directions. As a trader your making money when you are able to identify high probability zones where price will continue to move or reverse in the direction you anticipate. To assist in your accuracy you use various tools.
Leonardo of Pisa, better known to us today as Fibonacci first introduced what we call the Fibonacci sequence to the west in his 1202 book Liber Abaci (the sequence was already known in Indian mathematics). He stumbled upon this sequence while attempting to estimate how many rabbits he would be able to breed in one year based on his knowledge of their breeding habits. This mathematical model is used by Forex traders today.
