Have You Heard of the Fibonacci Number and Series? Here Are Some Important Details you Need to Learn

Fibonacci has been named after Leonardo Pisano, he was born in 1170 in Pisa.

A Fibonacci number is a number that is the result of adding together the two numbers that precede it. likewise, the other number in the sequence is the result of adding the two preceding numbers. For example, if you take a series that has one and two as the first and second numbers respectively, if you add 1 and 2, the result, that is the third number will be 3, similarly, if you add the second and third number together which are 2 and 3, the fourth number that you get would be 5, the series goes on like this.

So, the series you get is 1, 2, 3, 5, 8, and so on. Therefore, the attained series is known as the Fibonacci series.

The fibonacci series is created with the rule, that each Fibonacci number is the sum of the two preceding numbers that it has. It usually starts with zero or one. The formula for the Fibonacci sequence is mentioned as F (n), n is the first number with which the sequence starts, so the following calculation is obtained if n = 0, and the first two numbers are 0 and 1:

The formula for Fibonacci series if the starting number is 0:

F (0) means the series will be 0, 1, 1, 2, 3, 5, …

In some situations, it is made mandatory to use n = 1. Here you have to use the first two numbers as 1 by default, so the series you get is as follows:

F (1) means 1, 1, 2, 3, 5, 8, 13, …

The Properties of Fibonacci Number

Following are some of the important properties for the Fibonacci series:

• If you take any three consecutive numbers from the Fibonacci series, and add those together, dividing the outcome by 2, you will get three numbers. For Example, if you take three numbers that are consecutive like 1, 2, 3. Adding these numbers together will give you six as the answer, 1+ 2+ 3 =6. After diving the result by 2, you will get 3 as the answer.
• Similarly, if you take four numbers that are consecutive, except “0” in the series. Multiplying the outer and the inner number and then subtracting these numbers, the difference that you will get is “1”. For example, the consecutive number that you take are 2, 3, 5, 8. Multiplying the outer numbers means 2(8) and then multiplying the numbers on the inside which are 3(5). You have to subtract the resulting numbers, 16-15 =1. This is the answer that you get, 1.

Requests for the Fibonacci series also comprise of the algorithms of computer, like the technique for Fibonacci search, the data structure of Fibonacci heap, and the graphs known as Fibonacci cubes, which are useful for interconnecting the systems that are distributed and parallel.

The fibonacci sequence can also reflect the movement of prices going up and down in the stock markets. Retracements and allowances are also two important tools of the Fibonacci series.

There are certain limitations of using the series as well:

The use of the Fibonacci series is considered very independent as the traders use the highs and lows as per their choice. The results that you get are always affected by the highs and lows chosen.

Another fight against Fibonacci series methods used for trading is that many levels that exist have to be changed by the market, because of which the indicator has to look significantly in retrospection. The major difficulty that is faced is trying to know the level or number that would be important in the future.

As mentioned above, you must understand and practice the questions related to the Fibonacci series. Cuemath provides a detailed understanding for the same, you can clear all your doubts by taking them into consideration.