Sunday Fun: Why is Leonardo of Piza so Important?
May 24, 2009 9:00 am
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.
There is no need to register for this video and of course you can watch it with my compliments today.
Enjoy the video.