Fibonacci Talk IPK
Fibonacci Talk IPK
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fibonacci-analysis-master-the-basics/#1da6d16b5a4d 2/14
Introduction
Sequence
A sequence is an ordered collection of numbers. For example, 2, 4, 6, 8, 10, . . . .
Fibonacci Sequence
Fibonacci sequence is the sequence such that the new term is obtained by adding the
previous two terms. The initial first two terms of the sequence are 1 and 1.
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Fibonacci Numbers in Nature
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Introduction
Fibonacci Number
A number that appears in the Fibonacci sequence is called a Fibonacci number.
Formal definition
If f1 = 1 is the first term in the Fibonacci sequence, and f2 = 1 is the second term,
then fn = fn−1 + fn−2 for n ≥ 3. When a term of the sequence is obtained using the
previous terms, then such a definition is called a recursion rule.
Golden Ratio
The ratio of two consecutive Fibonacci numbers is an irrational number called the
Golden Ratio.
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Golden Ratio
The Golden Ratio
The golden ratio is found to be
√
1+ 5
ϕ= ≈ 1.618.
2
There are many ways to derive this number.
Properties
Both Fibonacci Sequence and the Golden Ratio have many interesting properties.
Reciprocal of the Golden Ratio
√
1 2 −1 + 5
= √ = = ϕ − 1 ≈ 0.618.
ϕ 1+ 5 2
Golden Ratio is a unique number that differs from its reciprocal by one.
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Golden Ratio
Golden Ratio
Golden Ratio is not limited to Fibonacci Sequence only. It is amusing that if we use
the same recursion relation, then no matter what two initial terms we begin with (and
whatever the sequence turns out to be), the ratio between two consecutive terms will
always be 1.618.
Example
f1 = 4, f2 = 6, f3 = 10, f4 = 16, f5 = 26, f6 = 42, f7 = 68, f8 = 110, f9 = 178,
f10 = 288, . . .
Check
6 10 16 26 42
= 1.5, = 1.67, = 1.6, = 1.625, = 1.615,
4 6 10 16 26
68 110 178 288
= 1.619, = 1.617, = 1.618, = 1.618, . . . .
42 68 110 178
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Golden Ratio: A Geometric Definition
Golden Rectangle
Find a number x such that the rectangle with sides x − 1 and 1 is similar to the
rectangle obtained by juxtaposing this rectangle with a square of side 1.
1 1
x −1 1
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Golden Ratio in Stock Market
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