Product / Product Information / Technical Analysis
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Fibonacci Studies
Tradecision enables drawing Fibonacci Retracements,
Fibonacci Extension, Fibonacci Circles,
Fibonacci Fans, Fibonacci Times Zones,
and Fibonacci Time Retracements.
Understanding Fibonacci Numbers
It is believed that in the 12th century Italian mathematician
Leonardo Fibonacci discovered a connection
between what is now referred to as Fibonacci Numbers while studying
the Great Pyramid of Gizeh in Egypt.
Fibonacci Numbers are a sequence of numbers
in which each subsequent number is the sum of the two previous
numbers, for example, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,
144, and so on.
The ratio between any number and the next larger number is equal
to 0.618 after the first four calculations. The ratio between
any number and the next lower number is approximately 1.618
(the inverse of 0.618).
The well-known Elliott Wave
Principle is also based on the application of Fibonacci
numbers to the waves seen in a price chart.
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