Fibonacci Sequence
Páginas: 2 (277 palabras)
Publicado: 5 de octubre de 2011
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Leonard Fibonacci, also known as Leonardo of Pisa, was a famous Italian mathematician who discovered a simple series of numbers that created ratiosdescribing the natural proportions of things in the universe.
The sequence of the Fibonacci numbers is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377 … toinfinity. Starting with zero and adding 1 begins the series.
After the first few numbers in the sequence, if you calculate the former by the latter number to that ofthe next higher number you’ll get .618. For example, 55 divided by 89 equals 0.618.This is called the golden ratio or golden mean. If we reverse the procedure anddivide the latter by the former, we get 1.61804. These numbers are reciprocals.
We use Fibonacci Retracements to find predictive areas of support or resistance. We use Fibonacci Extensions to find predictive areas for targets and areas of confluence (which we’ll get to later)
The typical retracement numbers we use are0.382, 0.50, 0.618, and 0.786
The typical extension numbers we use are 1.272, 1.414, and 1.618
So, what can we take from this? Most Traders will agree theFibonacci Retracements and Extensions are present in the markets. However, most Traders do not know how to properly use these tools. It is very easy in hindsight to drawFibonacci Retracements and Extensions. It’s only when you have Rules and a Trading Plan to go with this, that you can take real advantage and be consistentlyprofitable with them.
Fibonacci
Name:Keila Alvarez
Period: 3
Ms. Usher
Date Due: 09/02/11
Leonard Fibonacci, also known as Leonardo of Pisa, was a famous Italian mathematician who discovered a simple series of numbers that created ratiosdescribing the natural proportions of things in the universe.
The sequence of the Fibonacci numbers is 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377 … toinfinity. Starting with zero and adding 1 begins the series.
After the first few numbers in the sequence, if you calculate the former by the latter number to that ofthe next higher number you’ll get .618. For example, 55 divided by 89 equals 0.618.This is called the golden ratio or golden mean. If we reverse the procedure anddivide the latter by the former, we get 1.61804. These numbers are reciprocals.
We use Fibonacci Retracements to find predictive areas of support or resistance. We use Fibonacci Extensions to find predictive areas for targets and areas of confluence (which we’ll get to later)
The typical retracement numbers we use are0.382, 0.50, 0.618, and 0.786
The typical extension numbers we use are 1.272, 1.414, and 1.618
So, what can we take from this? Most Traders will agree theFibonacci Retracements and Extensions are present in the markets. However, most Traders do not know how to properly use these tools. It is very easy in hindsight to drawFibonacci Retracements and Extensions. It’s only when you have Rules and a Trading Plan to go with this, that you can take real advantage and be consistentlyprofitable with them.
Fibonacci
Name:Keila Alvarez
Period: 3
Ms. Usher
Date Due: 09/02/11
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