Fibonacci is an indicator that has been around for ages. Traders use it every day, in every market, for every trading decision. It has been used by some of the most successful traders. It is based on the Fibonacci sequence, which is the ratio of the last two numbers in the sequence. A lot of the history behind it is covered by a book called The Fibonacci Sequence and the Golden Ratio, which was written by Joseph P. Ferri.

The ratio of the second and the third number in the Fibonacci sequence is roughly 0.618 or.6180339887. It has been used by many traders as a great indicator, and the same indicator can be used for uptrend and downtrend.