1. Fibonacci numbers is a known name in the stock market as the levels of stock market are found with the help of this scientific tool which was founded by Leonardo Fibonacci, an Italian mathematician and same dates back to 10th century.
2. As a layman one can understand the same as a number which is being formed by adding prior two numbers. The series can be enumerated as below:
1,1,2,3,5,8,13,21,34,55,89 and so on.
4. It is pertinent to note that all the numbers have a correlation with each other as all numbers are related to the next or previous number by factor of 1.618 or 0.618. One will see the corelation of 0.618 & 1.618 which are inverse of each other.
5. Even alternate numbers have a corelation with a factor of 0.328 or 2.618. The numbers 0.618 or 1.618 are called the "golden mean" or the "golden number" and have a high accuracy rate in stock market by virtue of human psychology involved in it and thus Fibonacci numbers proves its accuracy in stock movements.
6. Even nature follows this rule and classic example is of a rectangle where length is 1.618 of the width. One will find the use of these numbers in orbitals of planets or electrons, nuclear physics, DNA helix, pyramids of Egypt and length of parts of the human body.
2. As a layman one can understand the same as a number which is being formed by adding prior two numbers. The series can be enumerated as below:
1,1,2,3,5,8,13,21,34,55,89 and so on.
4. It is pertinent to note that all the numbers have a correlation with each other as all numbers are related to the next or previous number by factor of 1.618 or 0.618. One will see the corelation of 0.618 & 1.618 which are inverse of each other.
5. Even alternate numbers have a corelation with a factor of 0.328 or 2.618. The numbers 0.618 or 1.618 are called the "golden mean" or the "golden number" and have a high accuracy rate in stock market by virtue of human psychology involved in it and thus Fibonacci numbers proves its accuracy in stock movements.
6. Even nature follows this rule and classic example is of a rectangle where length is 1.618 of the width. One will find the use of these numbers in orbitals of planets or electrons, nuclear physics, DNA helix, pyramids of Egypt and length of parts of the human body.
