A Fibonacci analysis can improve the performance of any temporary or long-term foreign exchange position by identifying key charge levels that act as help and resistance points. Fibonacci is an effective foundation for techniques that can be used for a wide range of market conditions and volatility when used in conjunction with many varieties of technical analysis. In his time as a monk and mathematician in the twelfth century, Leonardo de Pisa discovered a numerical sequence present both in nature and in basic artworks. Fibonacci retracement stages of.386,.50, and.618 are the most important in charting packages, with retracement stages of.214 and.786 adding depth to market analysis. As a result of the deconstruction of technical evaluation formulation by hedge funds in search of to entice merchants who utilize those standards to their advantage in the 1990s, secondary ratios have gained in importance. Whipsaws through predominant Fibonacci ranges have become more frequent as a result, yet harmonic structures have remained intact. Likewise, it was widely assumed that the.618 retracement would represent countertrend swings in a market that was once strongly trending at the time of writing. The.786 retracement now serves as a strong guiding line or resistance, depending on which way the major trend is moving in the market. Since the market has evolved, traders and market timers have had to adjust their techniques to account for a higher frequency of whipsaws and violations.