Steemit Crypto Academy | Season 3 - Week 7 || Fibonacci retracements | for professor @imagen
Who was Fibonacci? What were your most important contributions in the field of mathematics?
He was a son of the customs official that will become Europe's first great medieval mathematics. As a child, he traveled around North Africa with his father where he learned about the development of Arabic mathematics. Especially the benefits of the Hindu-Arabic numerals. When he got home to Italy he wrote a book that will be hugely influential in the development of western mathematics. He introduced the knowledge he has to Europe which has to do with the sequence of Fibonacci numbers.
The mathematics was called Leonardo of Pisa better known as Fibonacci. In his book of calculating, Fibonacci advertised the new number system showing how easy it was compared to the roman numerals in use across Europe. His system of calculation were far easier, a fact that had big consequences for anyone dealing with numbers. Everyone from mathematicians to the common men but there was widespread suspicion of these new numbers.
Describe in depth the Golden Ratio. How is it obtained? Where is it located? Give examples of your application through history.
Fibonacci is a popular trading method based on the number sequence. For many, the mechanics behind this mathematical approach to market analysis could appear complex and confusing.
The Fibonacci sequence is a sequence of numbers calculated using the golden ratio or roughly 1.618. Here's what the Fibonacci sequence looks like. 0,1,1,2,3,5,8,13,21,34,55.
To explain how these numbers are generated. Let's go back to the Golden Ratio. If we take any number in this sequence 0,1,1,2,3,5,8,13,21,34,55 and divide it by the previous number of the sequence, we should always come up with something that is around 1.618.
0,1,1,2,3,5,8,13,21,34,55
1 ÷ 1 = 1
2 ÷ 3 = 1.500
3 ÷ 5 = 1.618
8 ÷ 5 = 1.600
13 ÷ 8 = 1.625
21 ÷ 13 = 1.615
34 ÷ 21 = 1.619
55 ÷ 34 = 1.618 Golden Ratio
Dividing a number in the sequence by its successor will result in the sequence by its successor will result in 0.618 or 61.8%
0,1,1,2,3,5,8,13,21,34,55,89,144,233,377
89 ÷ 144 = 0.618 or 61.8%
Dividing a number in the sequence by the number places after will result in 0.382 or 38.2%
89 ÷ 233 = 0.382 = 38.2%
Dividing a number in the sequence by the number three places after will result in 0.236 or 23.6℅
89 ÷ 377 = 0.236 or 23.6%
23.6%, 38.2%, 61.8%. These are number used the technical chart including 50% and 76.4%.
The ratio represents many patterns in nature such as leaves on a stem, flowering of an artichoke, and even the arrangement of the pine cones.
Firstly, if you measure the distance between the edge of your fingertips and wrist and then you measure the distance between your wrist and elbow, it will approximately be 1.618
Secondly, human fingers are actually in the same ratio as the Fibonacci numbers 2,3,5, and 8. There are a lot of ways Fibonacci patterns appear in lot of nature.
Describe how Fibonacci is used in Tradigviews. Show screenshots
We can predict that we have a good chance that the retracement is going to reach zero level, it is a good signal of possible reverse. That means we can enter into a buy order once the retracement has completed knowing there is a higher chance that trend will reverse to your favor.
Make an investment of at least $ 10 (show screenshots). Determine Fibonacci levels with a timeframe of 4 hours for a period of 48 hours. Identify possible support and resistance levels for that time period. Show screenshots at 24 and 48 hours.
As we can see on the above chart that when the chart reach the resistance level the trend reversed.
What are Fibonacci extensions?
Fibonacci extensions are tools that dealers can use to build up to gain targets or calculate how far a value of a cryptocurrency might go after retracement/pullback is done. Extension levels are likewise potential regions where the cost might invert.
Expansions are drawn on a chart, stamping value degrees of conceivable significance. These degrees depend on the Fibonacci ratio (as rates) and the size of the value move indicator is being applied to.
The Fibonacci patterns have appeared in many natures even the least we could ever imagine such human DNA and some others. Though, Fibonacci patterns has been discovered far back has 12th century it is still very useful in this 21st century. It is also a useful technique in trading and lots of traders have been taking advantage of it.