about fibonacci
Fibonacci Himself
His real name was Leonardo Pisano Bogollo. He lived between 1170 and 1250 in Italy. "Fibonacci" was his nickname, meaning "Son of Bonacci".
As well as being famous for the Fibonacci Sequence, he spread Hindu-Arabic Numerals through Europe in place of Roman Numerals. Hindu-Arabic Numerals are much like the numbers we use today 0, 1, 2, 3, 4, 5, 6, 7, 8, 9. He has saved us all a lot of trouble! Thank-you Leonardo!
The Fibonacci Sequence
0 1 1 2 3 5 8 13 21 35 55…etc. Each number is the sum of the previous two. For example, 5 and 8 make 13, 8 and 13 make 21, and so on. We get a nice spiral when we make squares with those numbers as widths. See how the squares fit neatly together.
This spiral is found throughout nature. Typical examples are shells, pineapples, and flowers.
The Fibonacci Retracement
In trading, Fibonacci retracement is a method of technical analysis for determining support and resistance levels. This retracement is named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace a portion of a move before a trend continues in the original direction.
A Fibonacci retracement is created by taking two extreme points (usually a high and a low) on a chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% (or .618), and 100%.
