# Anticipate The Trend Of The Market: The Fibonacci Calculator

There was a moment of history, precisely during the Late Middle Ages, where the sciences underwent a period of decline.

We are at the end of 1100 and the beginning of 1200 when a group of mathematicians contributed to the rebirth of the sciences. Among them was Leonardo Pisano, known as Fibonacci.

Fibonacci was the first Christian algebraist, the most scientific genius of the XIII century in Italy. The fame of Fibonacci was so much that King Federico II invited him to court.

During his stay at the royal court, there was a tournament where he challenged the best mathematicians armed with paper, pen and abacus showing definitively how the calculation techniques according to the method learned from the Arabs could perform complex calculations faster than with any abacus.

Fibonacci solved the problem with such a speed as to make even think that the race was rigged.

We told this story because the figure of Leonardo Fibonacci is critical to understand some of the movements of the Market.

Fibonacci mathematical theories have become very important for traders, because they allow them to anticipate market trends.

Based on his studies it has been determined that after a significant move in currency prices (when the rate begins to retrace); it tends to find support or resistance at 38.2%, 50% and 61.8% of the larger move.

In Fibonacci theory, these three percentages have a very popular mathematical relationship as they continually appear in nature.

38.2%, 50% and 61.8% levels represent areas where there is a high likelihood that the retracement will stop and the larger move will resume.

To calculate support and resistance areas based on major and custom Fibonacci values has been created the Fibonacci Calculator.  Knowing how to use Fibonacci retracements and extensions in the trade can bring your trading to a new successful level.

The Fibonacci Calculator can be downloaded from the internet and it helps to find resistance and extension levels for the market prices. Like this it would be possible to anticipate market prices moves and plan future trades.

Before explaining how to use this tool, it is important to define some terms:

• Entry level: the price you will try to enter a trade.