Fibonacci | Emini Futures Alerts Trading Room

Fibonacci

Thirteenth century mathematician who developed a non linear number sequence in which each two consecutive numbers are added to arrive at the next number in the sequence. The Fibonacci series is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. One of the ways traders use the numbers is in the parameters of technical indicators. Fibonacci ratios are calculated by dividing a number by previous numbers and subsequent numbers. Traders use the ratios for calculating potential retracement levels, price objectives, and time and price squaring. Fibonacci’s intent was to work out a number sequence for the multiplication of a pair of rabbits.