Golden Phi Ratio (Fibonacci Numbers )

Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt.

The Fibonacci Numbers are widely known all over the world, Many natural phenomena grow in proportions following the Fibonacci Series.

This series of numbers is derived by starting with 1 followed by 2 and then adding 1 + 2 to get 3, the third number. Then, adding 2 + 3 to get 5, the fourth number, and so on.

The ratios are derived by dividing any number in the series by the next higher number, after 3 the ratio is always 0.625. After 89, it is always 0.618. If you divide any Fibonacci number by the preceding number, after 2 the number is always 1.6 and after 144 the number is always
1.618. These ratios are referred to as the “golden mean.”

Many people are familiar with a string of numbers such as this one: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. The Nth term of the Fibonacci series is constructed as the sum of the two preceding terms; e.g. 55 = 21 + 34.

Price Retracement Levels : 0.236, 0.382, 0.500, 0.618, 0.764
Price Extension Levels  : 0, 0.382, 0.618, 1.000, 1.382, 1.618