Fibonacci numbers are utilized to make technical indicators with the help of a mathematical sequence created in the 13th century by the Italian mathematician Leonardo Bonacci.
The name with which he is more widely recognized, Fibonacci, was made up in 1838 by the historian Guillaume Libri.
The sequence of numbers, starts with zero and one, and is the next number is the derived by the sum of previous two numbers. The sequence goes like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610 and so on.
This sequence is further broken down into ratios which some think gives an idea as to where price of a given stock will move to.
The Fibonacci sequence is noteworthy due to the famous expression golden ratio of 1.618, or its inverse 0.618.
In the Fibonacci sequence, every number is approximately 1.618 times the previous number, disregarding the initial few numbers in the sequence.
Each number is likewise 0.618 of the number to the right of it, again disregarding the initial few numbers in the sequence.
Fibonacci numbers don't have a particular equation, rather it is a number sequence where the numbers will in general have certain associations with one another.