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Fibonacci: Relationship and basic strategies

Leonardo Pisano, better known by his nickname as Fibonacci was born in Italy in 1170 and died in 1250. He was educated in Bugie, and traveled frequently with his father. During his travels, he was finding the enormous advantages of the mathematical systems used in several countries. This was introduced as the metric system and the use of Arabic numerals in Europe with his book Liber abbacy in 1202.

One part of his book referred to the large collection of problems relating to the goods. The main problems were, firstly, the price of property, second, how to calculate gains and losses on trading and finally the conversion of currencies normally used in the Mediterranean Sea area, a problem caused in China.

The third section of the book, concerns the introduction of Fibonacci numbers and the Fibonacci sequence, which starts at 1, and continues with 2, 3, 5, 8, 13, 21, 34, 55, etc.

This sequence, in which each number is the sum of the two previous numbers, was very widespread throughout the world, and used by mathematicians and scientists.

The Fibonacci series of numbers has interesting properties, which we analyze below:

• If we divide the consecutive numbers in the following series: 1 / 1, ½, 2 / 3, 3 / 5, 5 / 8, 8 / 13, etc., The resulting calculation tends to be 0.618.
• If we divide the numbers do not consecutive in the series, such as ½, 1 / 3, 2 / 5 3 / 8, 5 / 13, 8 / 21, etc., the resulting calculation tends to be 0.382.
• And if we calculate the ratio of any number of serial numbers on the bottom, the result tends to be 1.618, the inverse of 0.618, such as 21/13, 13 / 8, 8 / 5, etc..

The largest ratio

The relevant ratios are 0.382, 0.618 and 0.5. These ratios will be applied in calculating the regression and possible evolution of price movements in percentage terms.

In addition, many graphics systems have ratios of 23.6 and 76.4. The first is the difference between 38.2 and 50 multiplied by 2, while the second is the difference between 61.8 and 50 also increased 2.

Dynamics in the process of regression and evolution

These ratios even been used by Greeks and Egyptians, and concepts derived from them were known as "golden shares", and were used in ancient buildings such as the Pyramid of Giza and the Greek Parthenon.

These "golden shares" are applicable to the human body. For example, the limbs have 3 extensions, arm to arm and hands, 5 fingers each hand in turn divided into 3 areas. 3 and 5 are, of course, Fibonacci numbers. Unbelievable but true.


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