Fibonacci Numbers

Fibonacci sequence of numbers is the most import series of numbers in the universe. Few people are even aware of their existence. We are surrounded by the sequence and its simplicity. The first two Fibonacci numbers are 0 and 1, and each subsequent number is the sum of the previous two. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc, etc. Beautifully simple. Look in Nature. As a plant grows out of the ground (0), the first stalk is 1. It then splits into 2 parts. There is another split for the 3 and then it blossoms forth with the universal numbers. Leonardo Fibonacci of Pisa, Italy (that's the leaning tower not the pizza you eat) was born about 1175 and became known as the greatest mathematician of the middle ages. He grew up in North Africa where his father was a merchant and learned the Hindu-Arabic numbers as a tradesman and introduced them into Europe to replace Roman numerals. It is obvious Fibonacci was more than a numbers man. He must have been a great observer of Nature and all things around him. He saw the relationship of diverse material objects. The Fib numbers apply equally t the human skeleton and the skeleton of a fish. To a plant, the stars and music. A brilliant mind. There is a place someone observed where pigeons perch along a roof in exact Fibonacci distances from each other along the edge. Those who wish to see will find relationships in many common items. Some historians say he did not discover the series, but wrote about them and had been given more credit than he deserved. He knew a good thing and broadcast it into Europe and now every person in the world uses the Hindu-Arabic numbering system. Fibonacci numbers are used every day in the financial world. Much technical analysis is based on these numbers as well as being used with the Elliott Wave. The latter will be discussed at another time. When doing a stock price forecast Fibonacci numbers are used to predict both the advance and the support points for the next price move. There are many software programs that do these automatically. Most brokerage company web sites will display the charts with the Fib levels upon request. Any additional knowledge that can be applied to an investment portfolio that is not based on opinion can help the investor attain greater profits. A study of these sequences may be useful. When you look around now you will see many Fibonacci occurrences.