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What is the Fibonacci Sequence and Fibonacci Uses
The Fibonacci sequence is a math series of numbers that follows a recognized and orderly pattern. This sequence was first identified in nature and the outside world.
The sequence’s pattern has measurements that represent the Spiral shape in many places in nature.
We can find historical and modern applications of the Fibonacci such as in Visual Arts, Finance and Architecture.
In the Fibonacci series each number after 0 and 1 increases by the sum of the previous two numbers.
The repeating frequency of this pattern led Indian mathematicians many centuries ago to study the occurrence of the series.
Mathematician Leonardo Fibonacci re-discovered this algorithm and in 1202 introduced it to the Western world.
In the West, the sequence has been applied to find patterns in different subjects.
The Fibonacci is a simple sequence presented in this organized pattern; 0,1,1,2,3,5,8,13,21,34, 55 and so forth.
In nature, the sequence is seen as a Spiral in sunflowers’ seeds packed in the center, in shells, hurricanes and other forms.
The numbers in the sequence are associated with a corresponding ratio of 1.618 to 1, which has been used in visual arts and architecture to make the works more visually appealing.
Today, the sequence and it’s Golden ratio continues to find new applications.
Here Are 5 Basic Applications of Fibonacci Sequence
The Golden Ratio in Finance
An old math algorithm finds new uses in Finance and Economics.
It is natural for humans to try to forecast events and to prepare for them to manage risks.
Traders and investors are no exceptions, they too want to find predictability in an otherwise unpredictable market.
Technical analysts use many tools to manage their risks and one of these is the Fibonacci sequence.
Fibonacci studies and the Golden ratio can be used in technical analysis of any market including;
- Crypto Currencies
- Foreign Currencies
It has been found that the Fibonacci sequence and ratio have strong relationship to herd behavior, this makes them psychologically important for markets.
The Fibonacci is very relevant to the study of price retracements, wether this is due to Psychology or Math is not totally clear.
Fibonacci levels have more relevancy when the market or a security is having sharp movements.
The ratio is used by traders, along with other tools, to predict price retracements or pullbacks. These levels can be used to define target prices and market levels.
Fibonacci is not a magic formula and it serves more as an aid to reduce uncertainty, not to find a perfect point of entrance or exit.
The most used Fibonacci retracements levels are at 38.2% and 61.8%.
After significant price movement upward, Fibonacci ratios can be applied to define pullbacks levels before they occur.
Technical analysts use other indicators and price patterns to come up with an overall strategy.
You can find a free Fibonacci Calculator to use as part of technical analysis. Also, any charting tool will have the option to use the ratios.
Fibonacci Sequence In Nature
The patterns in the Fibonacci sequence have been observed in many places in nature, so this is not an application but a natural phenomena.
The natural world has found a way to arrange Sunflowers seed growths and plants structures in a manner that follows the Fibonacci Sequence or Spiral.
Examples of this sequence in nature include;
- The number of petals in a flower like the Lillies and Irises.
- The arrangements of the seeds in a Sunflower.
- The parts or chambers of a Nautilus shell increases in size proportionally to the Fibonacci Golden ratio.
- Pinecones are also arranged in a spiral form.
- Pineapple hexagons displays 3 spirals in three dimensions.
- The flowering of an Artichoke follows the ratio.
Golden Ratio in Visual Arts
A math concept for a creative endeavor that has been applied by artists and architects for centuries.
One of the earliest applications of the Fibonacci is in the arts. The use of a mathematic concept to create visuals that are pleasing to the eyes.
Some of the most iconic art works make use of the Golden ratio showing Mathematics and Art coming together.
One example is Leonardo da Vinci’s application of the Golden ratio to his famous painting of the Mona Lisa.
The ratio is not very obvious in this work, but some researchers claim a clear use of the Fibonacci ratio.
Even though da Vinci makes no reference to ratios, one of his contemporary and collaborator, Luca Pacioli, wrote a manuscript detailing the use of mathematical proportions in art.
Pacioli’s original manuscript is viewed online.
Dali’s Sacrament of the Last Super painting is also claimed to use the proportions of the Golden ratio.
Fibonacci Use In Architecture
Builders and architects have used the Fibonacci sequence to design famous structures and monuments of the past and present.
The Golden ratio has been applied to structures like the Pyramids of Giza and many of the Roman architecture.
Today’s architects continue implementing the ratio to buildings of large scale.
Frank Lloyd Wright used nature and geometry to design his famous structures like the Guggenheim museum’s spiral arrangement resembling a nautilus shell.
More modern architects continue implementing the Golden ratio in designs like the Lego House in Denmark .
Fibonacci Sequence in Photography
The ratio and sequence are used in photography as a guideline for composition by itself or combined with other rules.
Using the Fibonacci sequence and ratio provide symmetry and organization to a photo.
They are used to replicate patterns in the photos that are already in nature for a pleasing visual experience.
Luckily, photo editors like Photoshop already come with menu options for the Golden ratio and Golden Spiral. So, photographers don’t have to worry about the mathematics.
Fibonacci Sequence vs Golden Ratio
The Fibonacci sequence is a series of numbers where each number increases by the sum of the previous two.
The Golden ratio or Golden mean is 1.618 representing the relationship between the numbers in the sequence.
Other Names the Fibonacci sequence is known for
The sequence is also known by these names;
Fibonacci Spiral, Golden Spiral, Phi, grid, divine proportionate, Golden ratio, Fibonacci sequence and Golden mean.
Importance of the Fibonacci Sequence
The sequence is very important in disciplines where it has been found to have high relevancy.
In finance, it is use to reduce risk and in art is use to create appeal along other tools.
Other physical forms of the Fibonacci ratio
The Fibonacci sequence has been recognized in many physical forms. Some of the ways we can observe the ratio include; the Milky Way galaxy, waves in the ocean and in hurricanes.
The Fibonacci sequence and its corresponding ratio is a natural phenomenon with applications to some real life human activities.
The sequence was discovered and re-discovered many centuries ago. However, new uses for this pattern continue to be develop.
As represented in nature, these numbers can be codified to use it with relevancy, although not always perfect, in visual arts, architecture, photography and finance among other disciplines.