Investing on the stock market is associated with taking risk. Contemporary investors use various methods that support their decisions. Apart from fundamental analysis, the technical analysis, in which a variety of tools is used allows for a precise study of diagrams and trends and, therefore, enabling forecasting future changes in the prices of financial instruments, becomes more and more popular. With that, investors are able to adequately react and maximise their profits or minimise risks on the stock market. The purpose of this article is the presentation and description of technical analysis tools based on Fibonacci sequence with a particular emphasis on price patterns created using Fibonacci numbers. In the first part of the article the author presents Fibonacci sequence and the golden ratio, then pointing out the possibilities of its use on financial markets. Moreover, the attempt of finding the two main types of price patterns in the actual realities of stock market is conducted, within markings of polish index WIG20. The article ends with conclusions concerning the use of Fibonacci numbers and the golden ratio in the technical analysis, and the possibility of effective price pattern application in the actual investment.
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