## Golden Ratio

Oct 01
2008

Why the figure of Leonardo of Pisa (aka Fibonacci) from the 12 th century as important for financial operators today? To give a little history, this period has been a tremendous progress in mathematics, which emerged from the needs of global trade, faster than Europe has left the Middle Ages.

In 1202, Fibonacci published Liber Abaci his work book (paper abacus), who introduced the Hindu-Arabic numerals and concepts, which released the abacus math. This was the birth of modern mathematics, which enabled me to write on my computer and you can not read yours! Fibonacci asked: If you put a male and a female rabbit in a cage and give birth to a new pair every month, the number of rabbits will there be after one year (but not death, of course)? This gave birth to the sequence Fibonacci: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, etc. Interestingly, the relationship of a number to the one just before it went to 1618 .. And surprisingly, its inverse is 0.618 .. The report is now known as the golden ratio and proportions are considered the most beautiful in art and architecture (the Greeks and Romans widely used). It expresses the relationship between growth (or decrease) in nature – and this is important for market performance.

Graphics Fibonacci

As almost any table, one is beaten by the waves action – growth and decay. The market moves in one direction, then back to part of this movement – often at a Fibonacci level! Here is a classic recent example – the Dow Jones of2007-2010. The famous market is down in March 2009, brought a precise Fibonacci retrace 61.8%, then stop, exhausted, and started the big leg down. You will find a variety of extraordinary performance on my blog – the details in my post to the bio below. It is worth seeing.

Another good example of a table of Fibonacci is the latest move in the Dow Jones: Dow shared a 76.4% Fibonacci re exactly, then covered right there. You can also view this image in your blog.

The very short time, also, I use Fibonacci levels to help me trace enter and exit the market. It is amazing that even a 3 minute chart, I often see these Fibonacci levels provide support or resistance.

Most platforms offer online map graphics on their packaging Fibonacci trading – Check with your service provider if paris Fibonacci (extension). To me, still surprised that 12 merchant son of a century (but better not happen!) Could give us some traders modern touch helps us to negotiate successfully.

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Golden Ratio Point Of The World * Mecca