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Leonardo Fibonacci was a mathematician who

was born in Italy around the year 1170. Mr.
Fibonacci discovered the relationship of what
are now referred to as Fibonacci numbers.

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FIBONACCI NUMBERS
Fibonacci numbers are a sequence of
numbers in which each successive number is
the
sum of the two previous numbers:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 610,

etc.

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• In fibonacci series the interrelationship is such
that any given number is approximately 1.618
times the preceding number and any given
number is approximately 0.618 times the
following number.
At present, the sequence is often referred to
as the golden section, or golden average. In
algebra, it is commonly indicated by the
Greek letter Phi (Phi = 1.618).

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    1:1 = 1.0000, which is less than phi for 0.6180

    2:1 = 2.0000, which is more than phi for 0.3820

    3:2 = 1.5000, which is less than phi for 0.1180

    5:3 = 1.6667, which is more than phi for 0.0486

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FIBONACCI STUDIES AND
FINANCE
When used in technical analysis, the golden
ratio is typically translated into three
percentages: – 38.2%, 50% and 61.8%.
However, more multiples can be used when
needed, such as 23.6%, 161.8%, 423% and so
on.

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INTERPRETATION

There are four primary methods for applying

the Fibonacci sequence to finance:
1.RETRACEMENTS
2.ARCS
3.FANS
4.TIME ZONES

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FIBONACCI
RETRACEMENT

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FIBONACCI ARCS

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FANS

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TIME ZONES

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It’s not magic, just do your homework

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CONCLUSION

VIKAS MITTAL

MBA FINAL
YEAR.
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