What is fibonacci?

Can someone explain to me (and anyone else who's interested) what fibonacci is all about?!

I've done some reading into it but I'm finding it a difficult concept to grasp.

I would like to know what it is? How it works? why it works? when to use it? and does it always work in practice?

Cheers

Posca

IMO as far as trading is concerned it's just a mythical magical number that holds so many in thrall that it sometimes becomes a self fullfilling prophecy.

0,1,1,2,3,5,8,13,21,34,55 etc

Go to Wikipedia, it's all there. You can apply the ideas in many different ways to trading. e.g. use 8-21 moving average cross-over system.

I think Dan Brown probably included it in the Da Vinci code, but I never read it so I'm not sure.

it's a type of pasta, like Action Man bow-ties

it's basically a mathematical equation that suggests that 38% and 62% are important ratio numbers in nature.
ie your belly button is at 38% of your height, your eyes are at 62% from your jaw etc.

using gazillions of examples, such as the division of flower petals, pineapple pips whatever, proponents extrapolate that this "magic" ratio, has some place in trading.
I keep an open mind on it, but there certainly seems to be a huge element of self-fulfillment in it;s use in the markets .
Where I struggle with it is when people grasp at other minor ratios that also appear as part of the Fibonacci study - when 38% fails, they claim 50% is the important number; when 62% fails, they claim 123% or whatever will be the turning point.
As I say, keep an open mind, but beware of curve fitting using too many convenient ratios

My understanding is that a trader will click on the highest high / or lowest low and drag the cursor to the charts lowest low / or highest high respectivley. Then pressumabley the price should move to at least one of the stated fibonacci support or resistance levels.

thats the theory

I reckon it's quite useful to gauge how far a trend or swing is pulling back, e.g. has it gone further than 50%? Maybe the trend is buckling etc, but other than that it's just a theory. Unless of course so many people believe it then it may start to take effect.

nunrgguy said:

IMO as far as trading is concerned it's just a mythical magical number that holds so many in thrall that it sometimes becomes a self fullfilling prophecy.

Click to expand...

Doesn't that describe all price action?

Here's my philosophy. If it's included with your spread-bookie account, it's not there for your benefit.

Fín.

The stand you took here is worth a read...

You're referring to this: Fibonacci Retracement
http://www.investopedia.com/ask/answers/05/FibonacciRetracement.asp
derived from this: Fibonacci Ratio
http://en.wikipedia.org/wiki/Fibonacci_ratio
And if you really want to get into it; it's all based upon this: The Fibonacci Sequence
http://en.wikipedia.org/wiki/Fibonacci_sequence

The internet is your friend my man...

What ever happened to Gianni ?

Hi Posca,

I would like to give some of the best information from my side ...............
I am very interesting for this topic ...........and want to give you some thing which is i have .....So let me...........The Fibonacci number sequence was used in the metrical sciences, only it was known as Indian mathematics. Indian mathematicians used this numeral sequencing hundreds of years before Fibonacci became aware of it. Fibonacci shared it with the west, after becoming aware of it,by publishing Fibonacci's Liber Abaci. Therefore, it became known as Fibonacci numbers...............Thanks ........


Regards

Seforex

seforex01 said:

Hi Posca,

I would like to give some of the best information from my side ...............
I am very interesting for this topic ...........and want to give you some thing which is i have .....So let me...........The Fibonacci number sequence was used in the metrical sciences, only it was known as Indian mathematics. Indian mathematicians used this numeral sequencing hundreds of years before Fibonacci became aware of it. Fibonacci shared it with the west, after becoming aware of it,by publishing Fibonacci's Liber Abaci. Therefore, it became known as Fibonacci numbers...............Thanks ........


Regards

Seforex

Click to expand...

Good for you, mate. That's put Fibonacci in his place, I've been waiting for that to happen! Blinkin' Italians!
They are trying to get the Champion's League to-night!

Fibonacci is used by trading trainers to extract money from new traders before the broker can take their accounts.

Much money is taken from traders who use Fibonacci as their primary system and caution is advised as with any other indicator.

sounds italian for someone who is a compulsive liar (or maybe a liar 62% of the time)

Fib 'o nacci

Peter

wackypete2 said:

sounds italian for someone who is a compulsive liar (or maybe a liar 62% of the time)

Fib 'o nacci

Peter

Click to expand...

Surname: Nacci





It could reasonably be argued that this is the most famous name and surname of the Christian World. It was recorded from the 12th century a.d. onwards in every European country, and in a vast range of spellings, of which there are believed to be over fourteen hundred in total. These range from the base forms such as Jon or John (England & Wales), Evan (Wales), Ian (Scotland), Shane (Ireland), Ivan (Russia) and Jean (France), to the Italian Giovanni, Zanni and Zoane, the Polish Janus, the Czeck Jan, Janak and Jansky, to the diminutives Jenkin, Jeannet, Nannini, Zanicchi, and Gianuzzi, the patronymics Johnson, Joynson, Jenson, Jocie, Ivanshintsev, and Ivashechkin. However spelt, all have derived from the biblical Hebrew "Yochanan", which translates as " He who Jehovah has favoured (with a son)". The name became particularly popular after the 12th century when returning Crusaders from the Holy Land often called their children by biblical names in commemoration of the fathers pilgrimage, these then in turn developed into surnames. The earliest recordings of surnames are to be found in Britain and amongst these is Thomas John in the "Hundred Rolls" of the county of Buckinghamshire for the year 1279, and Arnold Johan in the 1280 "Letter Book" register for the city of London. In Germany Walterus filius Johannis appears in the 1323 charters of the town of Vaihingen, whilst the 1344 charters of the city of Friedberg record Baumeister Johannssen. The first recorded spelling of the surname in any spelling is believed to be that of Pertus Johannis, which was dated 1230 a.d.. This is in the charters known as the "Close Rolls" of the county of Suffolk", during the reign of King Henry 111 of England,1216 to 1272.

and it's also Septic for a toilet

fib is one of the main technical indicators for forex and the stock maket as well. fib indicators can predit the market at an accuracy of more than 60%.

Just go to youtube and search for fib, you'll get lot of tutorials.

thank you