Market Comparison Breakdown: Fib Sequence Day vs Fib Ratio Day
Italian Leonardo of Pisa, better known by his nickname Fibonacci, was perhaps the most talented Western mathematician of the Middle Ages. In 1202 he wrote a book called “Liber Abaci” (“Book of Calculation”), in which he promoted the use of the Hindu-Arabic numeral system over Roman numerals then in use in Europe.
Fibonacci is best known for his introduction into Europe of a particular number sequence, which has since become known as Fibonacci Numbers or the Fibonacci Sequence. Fibonacci numbers form a sequence where a number is the sum total of the last two numbers, starting with 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 … and so forth. When we take any two successive Fibonacci numbers, their ratio is very close to 1.618, or its inverse 0.618. This ratio can be seen throughout nature and even finds its way into trading. As Fibonacci is all about numbers we thought that we would test (just for fun) the influence that may or may not affect the markets on the two Fibonacci dates; Fibonacci Sequence Day on November 23rd and Fibonacci Ratio Day on June 18th. Click on the links to discover why these dates celebrate Leonardo of Pisa (AKA Fibonacci).
The questions is which Fibonacci date influences the markets the most … Sequence or Ratio?
Calendar Breakdown by Events
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