Inserting image into IPython notebook markdown

Question

I am starting to depend heavily on the IPython notebook app to develop and document algorithms. It is awesome; but there is something that seems like it should be possible,

Answer 1

Most of the answers given so far go in the wrong direction, suggesting to load additional libraries and use the code instead of markup. In Ipython/Jupyter Notebooks it is very simple. Make sure the cell is indeed in markup and to display a image use:

![alt text](imagename.png "Title")

Further advantage compared to the other methods proposed is that you can display all common file formats including jpg, png, and gif (animations).