Forex Information - Who Or What Is Fibonacci And What Does It Have To Do With The Forex Market? (Part 1)

Fibonacci strategies in forex trading are strategies for anticipating and capturing significant turns in stocks, stock indices and exchange-traded funds. They use classic principles and applications of Fibonacci numbers and a trading system known as the Elliott Wave. The idea is to calculate and predict key turning points in the markets, analyze business and economic cycles and identify profitable turning points in interest rate movement. Many forex traders benefit from the system and from Fibonacci. But, who is Fibonacci?

From 1170 to 1250 Fibonacci was the name used by the Italian mathematician Leonardo Pisano. The son of Guilielmo and a member of the Bonacci family, Fibonacci himself sometimes used the name Bigollo, which may mean good-for-nothing traveller. A brilliant mathematician who wrote several books, Fibonacci was a genius ahead of his day. He is most well known today for the sequence 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, etc, which figures prominently in what is today known as Fibonaccian mathematics, and has a quarterly scholarly journal devoted to it. Fibonacci introduced the western world, which until that time had used the Roman numeral system, to the modern decimal system, imported from Babylonia. The Fibonacci number sequence are studied as part of number theory and have applications in the counting of mathematical objects such as sets, permutations and sequences as well as in computer science.

Fibonacci believed that Arabic numerals were simpler and more efficient than Roman numerals. He traveled throughout the Mediterranean world of his day and studied under the major Arab mathematicians of the day, and returned to Pisa around 1200. In the year 1202, when he was 32 years old, he published what he had learned in The Book of Calculation. In it he showed the practical importance of this new to Europeans number system by applying it to commercial accounting and to conversion of weights and measures. He also showed how to apply it to the calculation of interest, money-changing, and many other applications. The book was well received in educated Europe and it had a profound impact on European thought. Still the use of decimal numerals did not become widespread until the invention of printing almost three hundred years later. Fibonacci was honored to be a guest of the Holy Roman Emperor Frederick II who was a fan of mathematics and science. In the year 1240 his city, the Republic of Pisa honored him by paying him a salary from the city.

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