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Golden Ratio

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Golden Ratio
The golden ratio is approximately 1.618 : 1. This ratio is commonly found in nature and architecture. Stock traders often look for this ratio in patterns on stock charts.

 


Golden Ratio
The ratio of any two consecutive numbers in the Fibonacci Sequence (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55...). After development of the sequence the ratio between one number and it's preceding number is 1.

The Golden Ratio
After the first several numbers in the sequence, the ratio of any number to the next higher is approximately .618 to 1 and to the next lower number approximately 1.618 to 1.

The Golden Ratio
As we progress along the sequence, the ratio of each number to its preceding number approaches closer and closer to the golden ratio: approximately 1.618.

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The "Golden ratio" number is often referred to for the number .618% due to the many coincidences that reoccurs with that number. For example 89=+/- .618 of 144, 144 divided by 233 + .618, .382 + .618 = 1.00, .786 = the square root of .618%.

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Golden Mean or Golden Ratio: The ratio of any two consecutive numbers in the Fibonacci sequence, known as phi and equal to 0.618.

618 (known as the Golden Mean or Golden Ratio), and to the lower number approximately 1.618 (the inverse of the Golden Mean), after the first four numbers of the series. The three important ratios the series provides are 0.618, 1.0 and 1.618.

This properties of the fibonacci series occur throughout nature, science and math and is the number 0.618 is often referred to as the "golden ratio" as it is the root of the following polynomial x^2+x-1=0 which can be rearranged to x= 1/(1+x).

In addition, the ratio of any term to the next lower term in the sequence tends asymptotically to 1.618, which is the inverse of 0.618. This proportion is known by several names, like the golden ratio, the golden mean, divine proportion, and PHI, ...

See also: Ratio, Fibonacci, Stock, Trading, Trade