Fibonacci

The formulas in the Formula Manager's Fibonacci tab are overlays that draw Fibonacci retracement levels.

The decimal system replaced roman numerals in the 13th Century AD when Leonardo da Pisa (aka Fibonacci) published Liber abaci.

FIbonacci numbers are an example of recurrence relation and can be defined as:

i.e., 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233...

Dividing any number in this series by its successor results in a quotient that is roughly .62, or 62%:

21/34 = .6176

34/55 = .6182

144/233 = .6180

Squaring the quotient .6180 gives the number .382, or 38%.

The Fibonacci overlays distributed with Aspen Graphics are designed to display retracements based on an instrument's 52 week high and low.