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Fibonacci Numbers

Discussion in 'Traders Glossary' started by Cyclon, Jul 2, 2008.

  1. Cyclon

    Cyclon Company Representative

    Joined:
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    Fibonacci Numbers are the naturally occurring number series named after a mathemetician who observed them. These were seen in such natural events as the numeric results of the propagation of rabbits.

    They are built on the number Phi ( Ø ) 1.6180339887 which is known as the Golden Mean and has been known and used for millennia by artists, architects and mathmeticians.

    The series propagates from one value to the next by adding the one before it to itself. There is nothing before 1 (not even 42).
    So 1 + 0 = 1, 1 + 1 = 2, 1 + 2 = 3, etc.

    1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377 and so on.

    These numbers have significance in trading as being foundational to Elliott Wave, Fibonacci Ratios, Fibonacci Retracements, and Fibonacci Timeframes.
     

Y

y/y

Z

ZEW

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