Friday, 1 August 2014

Fibonacci

Constructing Golden Ratio Rectangle:-
What a beautiful creation of god in form of fibonacci . Ever wondered how trees in china knows to grow as same pattern with trees in america. How snails know what is perfect spiral case for them. How human body is composed of golden ratios.

Spirals are also made from fibonacci ratio. Golden ratio.
God's design is flawless and without any gaps. You wont find anything created in this universe without a Golden ratio
The ratio, called the Golden Ratio, is the ratio of the length to the width of what is said to be one of the most aesthetically pleasing rectangular shapes. This rectangle, called the Golden Rectangle, appears in nature and is used by humans in both art and architecture. The Golden Ratio can be noticed in the way trees grow, in the proportions of both human and animal bodies, and in the frequency of rabbit births. The ratio is close to 1.618. Whoever first discovered these intriguing manifestations of geometry in nature must have been very excited about the discovery.
Golden Ratio = 1.618
Lets start drawing spiral and rectangle firstly , I draw a rectangle with one side 1 and other side 1.618

By making squares turn by turn  

and drawing radiuses we get a spiral form.
 By making squares on lower scales.

Wow, What a creation by universe.

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What is Fibonacci retracement, and where do the ratios that are used come from?


The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms and sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the common ratios used in retracement studies. 


The key Fibonacci ratio of 61.8% - also referred to as "the golden ratio" or "the golden mean" - is found by dividing one number in the series by the number that follows it. For example: 8/13 = 0.6153, and 55/89 = 0.6179.

The 38.2% ratio is found by dividing one number in the series by the number that is found two places to the right. For example: 55/144 = 0.3819.


The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example: 8/34 = 0.2352.

For reasons that are unclear, these ratios seem to play an important role in the stock market, just as they do in nature, and can be used to determine critical points that cause an asset's price to reverse. The direction of the prior trend is likely to continue once the price of the asset has retraced to one of the ratios listed above. The following chart illustrates how Fibonacci retracement can be used. Notice how the price changes direction as it approaches the support/resistance levels.
 

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Thank You. 

 

 



 

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