Fibonacci Ratio

The Fibonacci ratio, often referred to as the “golden ratio,” is a mathematical concept that reveals predictable patterns of balance and harmony found in various natural elements, even at the atomic level. The Fibonacci ratio, which traces its origins to the renowned mathematician Leonardo Fibonacci from the 12th century, emerges from the Fibonacci sequence. This sequence is formed by adding the two preceding numbers together. In the realm of finance, the Fibonacci sequence finds application through four primary techniques: retracements, arcs, fans, and time zones. These techniques enable analysts and traders to identify potential price levels and trends, providing valuable insights into market behavior.