Fibonacci Numbers

Fib Background

Fibonacci Numbers or Fib Numbers are not a product of the financial markets, but have been around for over 2000 years. This Fibonacci sequence of numbers was developed as a result of patterns that some very smart mathematicians noticed in nature. Yes there is some math involved, but again you do not need to know it!

Your charting package will do all the work for you. I am going to talk about the math anyway since I am sure some of you out there want to know!

The following equation is how the sequence is explained mathematically, I know it looks hard but it is not as difficult as My. Fibonacci makes it look.....



The Fib sequence in a simplified looks like this:

0+1 = 1
1+1 = 2
1+2 = 3
2+3 = 5
3+5 = 8
5+8 = 13
8+13 = 21
13+21 = 34
21+34 = 55
34+55 = 89
55+89 = 144
89+144 = 233
144+233 = 377

(0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377. . .) The sequence is infinite.

This mathematical sequence, though it had been around for centuries, did not get its official name, "Fibonacci Sequence", until the 13th century. Leonardo of Pisa, also known as Leonardo Fibonacci, was the Italian mathematician who made these numbers popular.