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Sunday Fun: Why is Leonardo of Piza so Important?

May 24, 2009

Watch the video explaining Fibonacci Retracements

You may have heard about Fibonacci, the man who discovered a set of numbers who that have a major affect on the market. So who is this  Fibonacci fellow, and why are his findings so important in the market place?

The mathematical findings by this thirteenth century Italian man has yielded a useful technical analysis tool which is used in technical analysis and by scientists in a large array of fields. Born Leonardo of Piza, he is better known in the trading community as Fibonacci. Fibonacci’s best known work is Liber Abaci which is generally credited as having introduced the Arabic number system which we use today.

Fibonacci introduced a number sequence in Liber Abaci which is said to be a reflection of human nature. The series is as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and on to infinity. The series is derived by adding each number to the previous. For example, 1+1=2 , 2+1=3, 3+2=5, 5+3=8, 8+5=13, and so on.

In the video below you will see the Fibonacci series mainly used for retracements and to show where support and resistance might come into the market. The video also addresses entering or adding onto a position by using the Fibonacci.

Watch this video to find out more in Fib Cycles

There is no need to register for this video and of course you can watch it with my compliments today.

Enjoy the video.

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Disclosure: Horowitz & Company clients may hold positions of securities mentioned as of the date published.

Written by Andrew Horowitz · Filed Under Markets, Strategy 

Comments

9 Responses to “Sunday Fun: Why is Leonardo of Piza so Important?”

  1. Jon on May 24th, 2009 2:40 pm

    I have been using these for years. Amazing reliable. Interesting charts from the March 6 low to current.

  2. ashu on May 24th, 2009 4:07 pm

    corey is big fan of this have u seen his blog :D

    ashu

  3. Carlos on May 24th, 2009 4:12 pm

    Spelling: is Leonardo of Pisa (http://en.wikipedia.org/wiki/Fibonacci).

  4. VPro on May 25th, 2009 2:41 pm

    A benefit I find in using Fibs is that they're a leading indicator. Once a move s going in a direction you can begin watching how the vehicle approaches .382, .50, .618, etc. areas to set up trades.

  5. John485 on August 23rd, 2009 1:17 am

    Incredible site!

  6. John485 on August 23rd, 2009 1:38 am

    If you have to do it, you might as well do it right

  7. John485 on August 23rd, 2009 4:08 am

    Great .Now i can say thank you!

  8. John485 on August 23rd, 2009 6:11 am

    I bookmarked this guestbook. Thank you for good job!

  9. David M. Edwards on July 23rd, 2010 11:06 am

    I use Fibonacci in my trading work. I'm till now don't know how it works but it works very clear.

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