IDEAS home Printed from https://ideas.repec.org/h/spr/prbchp/978-981-99-5118-5_21.html
   My bibliography  Save this book chapter

Fibonacci Trading Strategy

In: Research on Islamic Business Concepts

Author

Listed:
  • Nabila A. Azzam

    (Higher Colleges of Technology)

  • Roque A. Batulan

    (Higher Colleges of Technology)

Abstract

Leonardo Pisano Pogolo, an Italian mathematician, first introduced the Fibonacci sequence to the West in the 13th Century. The Fibonacci number series contains unique mathematical properties and relationships that can be found today in nature, architecture, and biology. The wide presence of these ratios in the universe also extends to the financial markets. It is just one of the reasons why many traders use the Fibonacci trading strategy to identify turning points in the market. The development of the Fibonacci strategy is to come up with a process that could be used to predict movements in the money markets in relation to the different financial assets. Financial assets are expected to offer returns, and the investors have to ensure they are making the right decisions. The strategy ensures an investor can track the performance of various financial assets and can arrive at the right financial decisions. The Fibonacci trading theory also focuses on the Fibonacci ratios which are used in the prediction process. This study focuses on how particular ratios are used in the trading strategy, including 61.8%, 50%, and 78.6% in this study. The traders understand that the Fibonacci strategy comes with various levels, such as retracement and extension levels. This study has illustrated the process of how investors and traders can utilize the trading strategy and how to utilize graphs to explain various scenarios. Furthermore, this study aims to explore the Fibonacci sequence in-depth, the Fibonacci levels strategy in forex trading, and some important points in the trading process.

Suggested Citation

  • Nabila A. Azzam & Roque A. Batulan, 2023. "Fibonacci Trading Strategy," Springer Proceedings in Business and Economics, in: Veland Ramadani & Baker Alserhan & Léo-Paul Dana & Jusuf Zeqiri & Hasan Terzi & Mehmet Bayirli (ed.), Research on Islamic Business Concepts, chapter 0, pages 347-356, Springer.
    • Handle: RePEc:spr:prbchp:978-981-99-5118-5_21
    DOI: 10.1007/978-981-99-5118-5_21
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:prbchp:978-981-99-5118-5_21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.