Video discussing Fibonacci retracements and extensions, their history, how they are calculated and examples of how they are used. This video was created using Personal Hotline. Applicable to all of Trendsetter's products including Personal Analyst, Pro Analyst and HotlineX.
Video:Utilizing Fibonacci Retracements
Understanding the Fibonacci number sequence presented using Personal Hotline from Trendsetter Software
Leonardo Fibonacci lived in the thirteenth century. His work on the relationship of mathematics and nature has been applied in physics, astronomy and engineering. Many famous market analysts believe that Fibonacci principles apply equally as well to markets and market psychology.
The Fibonacci number sequence is created by adding the last two numbers in the sequence to create the next number (i.e., 1,1,2,3,5,8,13,21,34,55,89,144… ∞). The first three numbers in the sequence are normally dropped for analysis purposes. The number sequence creates some interesting mathematical relationships. The most commonly used are: the ratio of any number to its next higher number which approaches a constant value of .618 (e.g. 34/55 = . 618, 55/89 = .618); the ratios of alternate numbers which approach a constant .382 (e.g. 21/55 = 382, 34/89 = .382). For those that are mathematically inclined, .382 is also the inverse of .618 (i.e., 1- .618 = .382).
The Fibonacci number series, its ratios and mathematical relationships are used to create four technical analysis indicators...
This video focuses on the Fibonacci ratios, their history, how they are calculated and examples of how they are used.