Fibonacci seems to be misunderstood.
Posted: Tue Sep 27, 2022 11:32 am
MrEMC2 if you are here... On the other place you wrote...
'The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature.'
The sequence are not the ratios mate. The ratios are derived numbers. For example, the Golden Ratio is after the eighth sequence of calculations, there are constant mathematical ratio relationships that can be derived from the series. Starting with the sum of the eighth calculation (34) as the numerator and using the sum of the ninth equation (55) as the denominator, the result yields 0.618.
34/55 = 0.618181 ~ 0.618
Repeating the process, the next division of the ninth calculation (21+34=55)
and the tenth calculation (34+55=89) equals 0.617978 or 0.618.
55/89 = 0.617978 ~ 0.618
In the inverse calculation of these numbers, the same rules apply. After the eighth calculation, use this sum (34), but in this case as the denominator, and the sum of the ninth equation (55) as the numerator. This inverse calculation yields 1.618.
55/34 = 1.676471 ~ 1.618
Repeating the process, the next division of the tenth calculation (34+55=89) over the ninth calculation (21+34=55) equals 1.618182 or 1.618.
89/55 = 1.618182 ~ 1.618
These mathematical relationships remain constant throughout the entire Fibonacci series to infinity.
However, there are other ratios used.
Primary Ratios:
(Directly derived from the Fibonacci Number Sequence)
0.618 = Primary Ratio
1.618 = Primary Projection
Primary Derived Ratios:
0.786 = Square root of the 0.618
0.886 = Fourth root of 0.618 or Square root of the 0.786
1.13 = Fourth root of 1.618 or Square root of the 1.27
1.27 = Square root of the 1.618
Complimentary Derived Ratios:
0.382 = (1-0.618) or 0.6182 which is also 1 - 0.618
0.50 = 0.7072 / 0.707 = Square root of 0.50
1.41 = Square root of 2.0
2.0 = (1+1)
2.24 = Square root of 5
2.618 = 1.6182 squared
3.14 = Pi
3.618 = (1 + 2.618)
'The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature.'
The sequence are not the ratios mate. The ratios are derived numbers. For example, the Golden Ratio is after the eighth sequence of calculations, there are constant mathematical ratio relationships that can be derived from the series. Starting with the sum of the eighth calculation (34) as the numerator and using the sum of the ninth equation (55) as the denominator, the result yields 0.618.
34/55 = 0.618181 ~ 0.618
Repeating the process, the next division of the ninth calculation (21+34=55)
and the tenth calculation (34+55=89) equals 0.617978 or 0.618.
55/89 = 0.617978 ~ 0.618
In the inverse calculation of these numbers, the same rules apply. After the eighth calculation, use this sum (34), but in this case as the denominator, and the sum of the ninth equation (55) as the numerator. This inverse calculation yields 1.618.
55/34 = 1.676471 ~ 1.618
Repeating the process, the next division of the tenth calculation (34+55=89) over the ninth calculation (21+34=55) equals 1.618182 or 1.618.
89/55 = 1.618182 ~ 1.618
These mathematical relationships remain constant throughout the entire Fibonacci series to infinity.
However, there are other ratios used.
Primary Ratios:
(Directly derived from the Fibonacci Number Sequence)
0.618 = Primary Ratio
1.618 = Primary Projection
Primary Derived Ratios:
0.786 = Square root of the 0.618
0.886 = Fourth root of 0.618 or Square root of the 0.786
1.13 = Fourth root of 1.618 or Square root of the 1.27
1.27 = Square root of the 1.618
Complimentary Derived Ratios:
0.382 = (1-0.618) or 0.6182 which is also 1 - 0.618
0.50 = 0.7072 / 0.707 = Square root of 0.50
1.41 = Square root of 2.0
2.0 = (1+1)
2.24 = Square root of 5
2.618 = 1.6182 squared
3.14 = Pi
3.618 = (1 + 2.618)