Sqtrades,Fib 50%, 38.2% fib are the Fibonnaci series of % ratios...

Sqtrades,
Fib 50%, 38.2% fib are the Fibonnaci series of % ratios that can be used for extension and retracement.

For the XAO, i took the 100% mark as 6854 the top of the market, the 0% i took at 3080 , near enough the bottom, the fibs are then marked out at 45254 as 38.2%, 49701 as 50% and 54147 as the 61.8%.

Now for some strange reason or another, nearly every thing in life, nature and the sharemarket follows the fibonnaci series of numbers , with those %(38.2 , 61.8) ones i have used as a mainstay. (have a look at the retracement of CNP on this thread)

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.

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.

Finally , i don't know why it works (it just does), but if your speking to a learned mathamatician he will tell you it's all about the rabbits. !!!!


Dont follow me, i'm lost too !!!