The Fibonacci sequence is a sequence such that each number is a sum of two preceeding ones. Fibonacci numbers play a role in determining the strength of the waves and their length. The fibonacci sequence helps us to obtain the fibonacci ratios by dividing one number in the sequence by the next number. For example, the Fibonacci sequence is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc. Hence dividing 34 by 55 (34/55) gives the fibonnacci ratio of 0.618. There are five types of Fibonacci trading tools. These are a rcs, fans, retracements, extensions and timezones. We are going to focus on the application of Fibonacci retracement levels to the Elliott wave. Fibonacci retracement levels are horizontal lines that can be used to draw support lines, identify resistance levels, identify levels for placing stop loss orders and target profit levels. They are used to dertermine critical points where price action is likely to reverse. The Fibonacci ratios are 23.6%, 38.2%, 50%, 61.8% a...