Crypto Academy / Season 3 / Week 7 - Homework Post for Professor @imagen

This is Season 3 Week 7 of Steemit Crypto Academy and I'm writing Homework Task for Professor @imagen

Question. 1)

Leonardo de Pisa, popularly known as Leonardo Pisano was an Italian mathematician. He is considered to be the most important mathematician of his time. To his name, we have the popular Fibonacci sequence, one of the base stones of various mathematical derivatives. He was the first person to devise this sequence. For his achievements, he is considered to be the greatest European mathematician of the middle ages. 

source

Personal information and awards:

Born: 1170 in Pisa, Italy Father: Guglielmo Died: Between 1240 and 1250, most likely in Pisa Education: Educated in North Africa; studied mathematics in Bugia, Algeria Published Works: Liber Abaci (The Book of Calculation), 1202 and 1228; Practica Geometriae (The Practice of Geometry), 1220; Liber Quadratorum (The Book of Square Numbers), 1225 Awards: The Republic of Pisa honored Fibonacci in 1240 for advising the city and its citizens on accounting issues. Source

Fibonacci was his nickname given to him by his father Guglielmo.

His work includes the Arabic numbering system, the concept of square roots, Fibonacci number sequencing, and even math word problems. Fibonacci with his father traveled to various regions and there he learned different things.  He learned calculus from an Arab teacher in Algeria. His thirst for more led him to travel himself to Sicily, Syria, Egypt and Greece. After spending a major part of his life in Algeria he came back to his hometown, Pisa.  After being settled in Pisa he published a number of theories. Some of the very popular were:

Practice geometries: In this book, he wrote about geometry problems, solid and plane figures, obtaining square and cubic radicals, formulas for the extraction of square and cubic roots 

Flos: This publication focused on mathematical problems and their practical solutions 

Liber abaci: In this book, he wrote about algebra and mathematics, calculation of profit and loss and explanation of fractional numbers. This book is famous by the name “book of calculation” Europe.

Liber quadratorum: The book of square numbers. In which he explained the lineage of square numbers.

Above all his biggest achievement of all time was to explain the sequence of numbers known as the Fibonacci sequence to his name, the theory is widely applied in scientific, mathematical and financial, and economic sectors.  This is a sequence in which each successive number is the sum of the two previous numbers. It begins with 0 and 1, and continues as  0, 1, 1, 2, 3, 5, 8, 13, 21.

Source of Information

Question. 2)

The golden ratio is also known by other names of divine proportion, golden number, divine number, irrational number. It is the ratio of a line segment that is cut into two pieces of variable lengths such that the ratio of the whole segment and the longer segment is equal to the ratio of the longer segment and the shorter segment.

Source 

History 

It is commonly represented by Greek symbols and letters ϕ or τ, its value is approximately equal to 1.618. The golden ratio finds its application in many mathematical derivatives and contexts. Elucid mentioned it as the extreme and mean ratio in his book “The Elements”. 

The Golden ratio was exhibited by nature in many forms such as the 

• The spiral shape of the seashells

• The arrangement of petals of many flowers

• The ratio of the number of spirals present in fruits like pineapple

• Some parts of the human body 

Calculation

In the terms of the algebraic expressions, we use these days the golden ratio can be represented as the

(x + 1)/x = x/1 

Whereas,

Length of the shorter segment =1

 Length of the longer segment be= X

The Fibonacci sequence is 1, 1, 2, 3, 5, 8, 13 which is the sum of the previous two consecutive numbers. And Golden ratio forms the basis of the value of the most basic of continued fractions, namely 1 + 1/ (1 + 1/(1 + 1/(1 +⋯.

Question. 3)

To use Fibonacci on Trading View

• Open any chart on the tradingview platform

• In the tools, option go to the Gann and Fibonacci Tools and click on Fibonacci Retracements

• If you see a downtrend, draw a line from top to bottom and if you see an uptrend, draw a line from bottom to top. In my case, it was a downtrend. To apply it correctly we should start it from the beginning of the trend to its lowest point.

• Fibonacci retracement is now added in the chart and you can analyze the market using it

it is to be noted that the position of the indicator should be changed with the movement of the trend. Its usage totally depended on the style of trading of a trader. However, it is recommended to use an oscillator such as the Moving Averages and any other supportive indicator along with Fibonacci retracement to determine accurate trends.

Question. 4)

I decided to make an investment in the RUNE/USDT pair, make my purchase at 7.438 RUNE/USDT, in the screenshot below we can see that the current trend is bullish and I was able to make my purchase at a point from where the market seems to continue its trend. (The screenshot is of little after my purchase the market had reached the price of 7.506)

The possible reversals could be below 0.786 and lower than that was 0.618 above it could go up to 1.

After 24 hours

From above the two possibilities the falling trend was right and the market dipped down. I updated my chart according to the current price and it touched the level of 0.236 exactly after 24 hours

After 48 hours

The situation of the market was that the market gained momentum to touch the level of 1 but was not able to break the resistance rather rebound from that point to reach 0.332.

The details of my purchase are:

Question. 5)

Fibonacci extensions are in reality a tool that supports the indications of the Fibonacci retracement tool. It is also based on the Fibonacci number sequence.  It is used to measure the exact support and resistance level. It is most commonly used in swing trading styles and scalpers do not appreciate its effect much.

The commonly used levels of 1,618 and 2,618 are used which are expressed as 161.8% and 261.8% are very helpful in determining when to sell and buy at the right time.

Fibonacci retracement and extensions give us the information of the possibilities of the future of the trend, that is the trend will continue or reverse.

Where Fibonacci retracements measure the extent of the pullback the Fibonacci extensions measure the extent of the impulse of a wave.

In the chart of BNB/USDT above, we can see the market is in the uptrend. At the points where the market is retesting but rebounding these can be taken as good reversal signals while the crosses can be taken as great continuation signals.

Conclusion 

Leonardo de Pisa left all of us in an awe of his achievements and accomplishments in the field of science and Mathematics. The Fibonacci sequence of numbers is a widely used concept all over the world in different sectors.

The application of the Fibonacci though is not what most traders use to identify the buying and selling signals but having a piece basic knowledge about it is important. According to many traders, the effectiveness of this indicator is 70% and that differs as to how it is applied.