The Golden Pocket, derived from Fibonacci levels, becomes a precise predictive tool when plotting retracement levels. Positioned just below the total reversal point, the Golden Pocket indicates a high likelihood of an asset beginning an upward movement.
Who invented the golden pocket?
The concept of the golden pocket dates back to the ancient Greeks and Egyptians. However, it was Leonardo Fibonacci who discovered the Fibonacci sequence of numbers that are used in the golden ratio. The golden pocket in trading refers to the Fibonacci retracement levels of 38.2% and 61.8%.
What is the significance of golden pocket levels?
The golden pocket levels are particularly significant at 38.2% and 61.8%. The table above illustrates the significance of various Fibonacci retracement levels. Traders often combine these levels with other indicators to validate their trading decisions and improve their overall success rate.
