1. Finance and the Fibonacci Sequence By Benjamin R. Hull

2. History Leonardo of Pisa (1170-1240) – Financial engineer; analyzed business problems – Brought Arabic Number system to the West Liber Abaci (1202) – Tools to calculate present value, compound interest, geometric series… – Rabbit problem First western appearance of Fibonacci sequence

3. Liber Abaci

4. Rabbits!

5. The Golden Ratio

6. The Fibonacci Sequence

7. Technical Trading Pioneered by Charles Dow A Random Walk Down Wall Street – Burton G. Malkiel – Cannot predict future trends based on past ones – Spread of information – Crowd instinct and mass psychology Individuals want to break even ($40 to $50 drop example) Price rise causes bandwagon effect

8. Strategy Identify trends and act based on possible future movements Support and Resistance – Lines represent potential turnaround points – Support: Price passes and continues rising – Resistance: Price does not pass and drops

9. Fibonacci Ratios

10. Pictures

11. s

13. Sources Books: Fibonacci and the Financial Revolution, Goetzmann, William N., The Origins of Value (pages 123-144). Oxford University Press Inc., New York, 2005. Fibonacci Numbers, N. N. Vorobev, Addison Wesley, Massachusetts, 2nd Edition, 1994. A Random Walk Down Wall Street, Malkiel, Burton G., W. W. Norton and Company, New York, 6nd Edition, 1996. Technical Analysis from A to Z, Achelis, Steven B., McGraw Hill, New York, Second Edition, 2001. Fibonacci and Lucas Numbers, and the Golden Section, S. Vajda, Halsted Press: a division of John Wiley and Sons, New York, 2nd Edition, 1994. Pictures and Other Sources: http://upload.wikimedia.org/wikipedia/commons/thumb/a/a2/Fibonacci.jpg/220px-Fibonacci.jpg http://en.wikipedia.org/wiki/File:The_Parthenon_in_Athens.jpg http://www.mathacademy.com/pr/prime/articles/fibonac/fibonac_8.gif http%3A%2F%2Fupload.wikimedia.org%2Fwikipedia%2Fcommons%2F0%2F04%2FLiber_abbaci_magliab_f124r.jpg&h=z AQFTteev&s=1 http://upload.wikimedia.org/wikipedia/commons/1/1c/Fibretracement.png http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:fibonacci_fan http://www.landlearn.net.au/newsletter/2008term3/images/rabbit-family-tree.png http://theinsanium.blogspot.com/2011/01/fibonaccis-rabbits.html http://en.wikipedia.org/wiki/Fibonacci_retracement http://blog.afraidtotrade.com/wp-content/uploads/112208-2335-fibonacci13.png