| Fibonacci
Numbers/Lines |
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Leonardo
Fibonacci was an Italian mathematician born in the 12th century. He
is known to have discovered the "Fibonacci numbers" which
are a sequence of numbers where each successive number is the sum
of the two previous numbers.
e.g.
1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
These numbers possess a number of interrelationships, such as the
fact that any given number is approximately 1.618 times the preceding
number.
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Interpretation of the Fibonacci numbers in Technical Analysis anticipates
changes in trends as prices tend to be near lines created by the Fibonacci
studies. The 4 popular Fibonacci studies are arcs, fans, retracements,
and time zones. |
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