Fibonacci sequence (Fibonacci numbers)

A series of numbers that begins with 1 and can be continued indefinitely. Each number in the series, starting with one, is the sum of the two preceding numbers. Thus the sequence 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc. is formed. – As one can easily find out, the result of a division of two consecutive numbers (for example: 55 and 89) with continuous series approaches the value 0.618. The quotient of one number and the respective next but one -for example: 34 and 89 – approaches the value 0.382. – Some analysts use these two values to define the conceivable range of fluctuations of a security, whereby, however, different time references such as stock exchange session, week, month or year are taken as a basis. – The Fibonacci sequence – so named after the Italian mathematician Leonardo Fibonacci, and used by him in 1202 in his “Liber Abaci” to determine the growth of a group of rabbits – is mathematically correct. However, it has never been explained conclusively why price swings on an exchange have to be aligned with the two limiting values of the Fibonacci sequence. – See Analyst, AstroPrognosis, Behavioural Finance, Financial Market Analysis, Formulas, Financial Mathematical, Halloween Rule, Calendar Effect, Monday Effect, Sell-in-May Effect, Small Cap Effect, Predictability, Exchange Rate Trend, Inexplicable.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/