Fibonacci analyses

Fibonacci analyses are based on a mathematical sequence of numbers in which each number is equal to the sum of the two preceding numbers. The sequence of numbers is: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc.

The most significant of these is the ratio of 1.618 - the so-called "golden ratio". This number is obtained approximately by dividing a Fibonacci number by the previous Fibonacci number. The further up you go in the sequence of numbers, the closer you get to the exact value of 1.618. The ratio of 0.618 is also an important number that you get approximately when you divide a Fibonacci number by the following Fibonacci number.

Further details on Fibonacci analyses can be found in the specialist literature.

There are four common Fibonacci analyses: Arcs, fans, retracements and time zones. You can display all four analyses using the drawing function.