Forex Technical Analysis

Do you ever heard about Fibonacci sequence? In my opinion, you should be very familiar with this series that also known as Fibonacci number or Fibonacci series. This series is very famous to be said as the number of God because there are a lot of things and events in the world that has a close relation with it. The construction of our body and the construction of the snowflakes are some of the examples. Even the recent elected US President, Barrack Obama, have been predicted to be the 44th US president with this number.

What is Fibonacci series actually? Fibonacci series is a series of number found by Leonardo Pisano Fibonacci, an Italian mathematician. He found a series of number starting with 0 and 1 that has special pattern: each number is the sum of the previous two numbers. So Fibonacci series will be 0,1,1,2,3,5,8,13 and so on.

It is also interesting that Fibonacci sequence has a very unique characteristic. Dividing a number with previous number allows you to get approximately similar result. However, the result will be the same after the 13th number inside the series: 1.618. This is what so called as the golden ratio that often said to be the number of God. Why? It is because there are a lot if constructions in the world that have close relation with this golden ratio.

One of the examples of Fibonacci sequence in the nature is the amount of petals in some certain flowers. Lily and iris has three petals, buttercup has five petals, cineraria and ragwort have 13 petals, and many more flowers that have Fibonacci number inside their construction. You could also find the golden ratio in your body. Comparing the length of your mouth and the width of your nose as well as the distance of both pupils and both eyebrows allows you to find the golden number.

There are still a lot of constructions in the nature that shows you the number of God, such as in human DNA, in some kinds of virus, and in some kind of shells construction. Those relations make this sequence become very popular. Dan Brown uses this series as one of the codes inside his book The Da Vinci Code and calls it as the Divine Proportion.

By: Frederic C Padilla

Fibonacci sequence of numbers is the most import series of numbers in the universe.

Few people are even aware of their existence. We are surrounded by the sequence and its simplicity. The first two Fibonacci numbers are 0 and 1, and each subsequent number is the sum of the previous two. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc, etc. Beautifully simple.

Look in Nature.

As a plant grows out of the ground (0), the first stalk is 1. It then splits into 2 parts. There is another split for the 3 and then it blossoms forth with the universal numbers.

Leonardo Fibonacci of Pisa, Italy (that’s the leaning tower not the pizza you eat) was born about 1175 and became known as the greatest mathematician of the middle ages. He grew up in North Africa where his father was a merchant and learned the Hindu-Arabic numbers as a tradesman and introduced them into Europe to replace Roman numerals. It is obvious Fibonacci was more than a numbers man. He must have been a great observer of Nature and all things around him. He saw the relationship of diverse material objects. The Fib numbers apply equally t the human skeleton and the skeleton of a fish. To a plant, the stars and music.

A brilliant mind.

There is a place someone observed where pigeons perch along a roof in exact Fibonacci distances from each other along the edge. Those who wish to see will find relationships in many common items. Some historians say he did not discover the series, but wrote about them and had been given more credit than he deserved. He knew a good thing and broadcast it into Europe and now every person in the world uses the Hindu-Arabic numbering system.

Fibonacci numbers are used every day in the financial world.

Much technical analysis is based on these numbers as well as being used with the Elliott Wave. The latter will be discussed at another time.

When doing a stock price forecast Fibonacci numbers are used to predict both the advance and the support points for the next price move. There are many software programs that do these automatically. Most brokerage company web sites will display the charts with the Fib levels upon request. Any additional knowledge that can be applied to an investment portfolio that is not based on opinion can help the investor attain greater profits. A study of these sequences may be useful. When you look around now you will see many Fibonacci occurrences.

By: Al Thomas

Oh, that field of math. Don’t you just love to hate it? Yet you have to admit that when someone explains some of its beauty to you and you get it, you marvel at how amazing a field it actually is.

Such is the case with number sequences and in particular one called the Fibonacci sequence. For those who do not know what a sequence is, it is simply a list of numbers that follow some predefined rule. For example, the sequence 2, 4, 6, 8 is the arithmetic sequence which is defined by multiples of the number 2. The Fibonacci sequence is the following: 1, 1, 2, 3, 5, 8, 13…Do you see the pattern? Well hold on if you don’t; what is more important-or should I say interesting-is could you ever have guessed that this sequence has something to do with sex appeal? Indeed. Read on.

If you were not able to see the pattern within the Fibonacci sequence, it is this: each successive Fibonacci number after the second is obtained by adding the two previous numbers in the sequence. Thus 3 = 1 + 2, 8 = 3 + 5, etc. Aside from the unusual appearance of these numbers within the realms of nature, as for example, such quantities as the number of black and white keys that form an octave on a standard piano are all Fibonacci numbers, and the number of spirals in the florets of a sunflower head are consecutive Fibonacci numbers; the quotient formed by consecutive numbers in this sequence get closer and closer to the golden ratio, and this is approximately 1.618.

Artists, musicians, and classical architects have been fascinated with this famous number, which seems to have a sex appeal all of its own. The ancient Greek sculptor Phidias, who created and oversaw the construction of the Parthenon in Athens, is believed to have used this golden rectangle concept in the facade of this famous architectural feat. Luca Pacioli, one of Da Vinci’s mathematics teachers, aroused great interest in the golden number in his work De Divina Proportione. Da Vinci used this work to bolster his claims that various aspects of the human body incorporated this golden number. For example, Da Vinci showed that the human face had proportions in accordance to the golden ratio. In order to show this, Da Vinci traced out golden rectangles on the face of an average human subject. One could suppose, that the more golden rectangles that could be traced out, the more aesthetically pleasing a person’s face was.

Obviously good looks are associated with an aesthetically appealing face. According to Luca Pacioli and Da Vinci’s propositions, the more closely one’s face adheres to proportions dictated by the golden ratio, the more aesthetically appealing a person is. Gee, now math is connected to sex appeal. How strange and curious this subject is! Yes. Sex appeal and math. You’ve got one, you’ve definitely got the other. All this sexy stuff found within a sequence of numbers that probably was found by some curious chap who decided to add 1 + 1 to get 2, and then said, hmmm, let’s add 2 + 1 to get 3, and so on. Next thing you know, these numbers a popping up all over the place from the piano keyboard to the face of a sunflower to the sex appeal of the human face. Wow, don’t you just love math!

By: Joe Pagano