Among stock investors, in the study of the Elliott waves often you will see naming the numbers 0,618 and 1,618 as usual proportions in the stock market charts, and therefore between stretches of Elliott waves.
These numbers are the golden proportions, highly estimated by old Greeks as the most beautiful proportions, and that are seen too much in the nature.
It is the positive solution of the equation x2 = x + 1
In addition, geometrically obtained by dividing if the lengths of the radius and the side of a pentagon, but they can also be obtained from the famous series of Fibonacci numbers, in which each number is the sum of the two previous, which appears with wonderful frequency in nature, for example in the reproduction of animals and population growth..
1,1,2,3,5,8,13,21,34,55,89,144 …. (Fibonacci presented the succession in his book Liber Abaci, published in 1202)
The Golden proportions are the proportions which tend two consecutive numbers in the Fibonacci series fn-1 /fn or fn/fn-1 , when the number grows to infinity.
Thus we have that between amateurs and professionals of the stock markets, these golden proportions, or proportions of Fibonacci numbers, are very estimated to make predictions about evolution of trends when the the stock market follow the behavior of Elliott waves.
[Via: www.relatividad.org/ondas_elliott/ondasdeelliottyfibonacci.html]
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