Fibonacci Numbers, Definition

A number sequence discovered by a thirteenth century Italian mathematician Leonardo Fibonacci (ca 1170-1250), who introduced Arabic numbers to Europe, in which the sum of any two consecutive numbers equals the next highest number – i.e., following this sequence: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 and so on. The ratio of any number to its next highest number approaches 0.618 after the first four numbers. Fibonacci numbers are said to be based upon observations of the Great Pyramid of Gizeh in Egypt by Fibonacci. These numbers are used by technical analysts to determine price objectives from percentage retracements. See also: Fibonacci retracements, Fibonacci arcs, Fibonacci fans, and Fibonacci time zones.

Related Articles: Trading with Fibonacci Numbers

Site Index: A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Recent Posts

The Oil Bubble?	May 17
Big Moves in the Currency Market	May 17
The Fed at the Crossroads	May 17

Marketplace Sponsors

Home - Forum - Articles - Reviews - Brokers - Charts - Newsletter - Advertise - Contact Us

The information contained on TradersLog.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. TradersLog.com is not a broker, nor does it have an affiliation with any broker.