## What is Gann’s perspective on the use of Fibonacci ratios in technical analysis?

What is Gann’s perspective on the use of Fibonacci ratios in technical analysis? One cannot know with certainty, but Gann said something (paraphrasing) in favor of the use of Fibonacci ratios and Golden Mean. Does anybody have a more clear explanation? I saw some sources where it actually states that if you add all Fibonacci numbers, you will generate the golden mean of 1.61803399, but the sum equals about 2.33, not 3. A: I was wondering what the reason Fibonacci Ratio were used to find the turning points in the market rather than just using the Fibonacci sequence and the Golden Ratio. The fact of Fibonacci is the Golden Ratio. However, what the market does is to apply Fibonacci ratios because the distance between the pattern and its turning point can be applied and obtained by multiplying the two opposite Fibonacci ratios. In order to control the Fibonacci sequence more closely, it has been divided into the F4 and the F5. The 5th generation in the fibonacci sequence is 3/5 of the Fibonacci ratio (2/3) and it is seen in the market to be a good predictor of market turning points. In the early 30’s, F4 was used to choose whether to purchase or sell a security or take some other position. By the 30’s, as the market matured, F4 in its original form had been developed into a F5 that gives a better idea of the market trend and points of turning. Then in the new world war in 80’s, F5’s use extended to the entire market. Now more often than not, market trend and turning points are analyzed with the use of Fibonacci sequence and ratios and people now talk about F5 instead of just F4 and F5 is used everywhere.

## Gann Harmony

F4 = 1, 2, 3, 5, 8, 13, 21, 34 ; Fibonacci numbers F5What is Gann’s perspective on the use of Fibonacci ratios in technical analysis? What is his view on the use of Fibonacci ratios in a reversal to discover this or sell signals? As we looked at the ratios for lower time frames we found the potential trend reversal signals. As these ratios often provide a helpful entry into a possible reversal trade, Fibonacci ratios are a starting point for a stock price analysis. Gann presented in the third diagram the idea of a “tent” formation. In this case the formation is horizontal so the actual line becomes the ceiling of the pattern. The next diagram shows the “cloud” (he says it is the “curtain” in the earlier book) and in this case the “cloud” extends to the right, so the ceiling is below the extension line. This would be seen in a continued up. ### **Gann’s Third Diagram in the Book: “** _Tent” Formation_ **”** What is next in the analysis? This might very well give an idea for the analyst making it a “first line of attack.” The author believes we will see the movement of the peak or cloud left lower than what we have just observed. That is an indicator of down trending. Gann proceeds to point out the ratios to note that in “all but three of the series, the ratios point to lows, with the longest duration ratio the least negative and the ratio for the shortest duration most negative.” Let us review the ratios. One can clearly see the most negative Fibonacci ratio, which is 1.618, for the 40-hour duration of September.

## Circle of 360 Degrees

But this ratio is at only -0.78 when compared to the previous ratio of -0.74. This new ratio is significantly lower. Other ratios all move lower, but again the ratios for the longer duration are the most significant. In the smaller denominator there are the ratios of -0.95/-0.81 to -0.97/-0.82. What is Gann’s perspective on the use of Fibonacci ratios in technical analysis? I just finished reading with interest the last thread where Gann introduced his theory about “fancy new-age things” and that led to the discussion about the use of Fibonacci ratios in technical analysis. In the same article Gann mentions his interpretation of the RSI (the widely used momentum oscillator, a ratio of the 50 day MA to the 20 day MA), a widely used ‘true long indicator’. Here are two quotes which i thought were enough to define Gann’s thinking about the use of ratios not from a technical point of view, but concerning mathematics: In the past.

## Financial Alchemy

.. the theory of Fibonacci informed many aspects of life (mainly spirituality, music, geometry, number theory, art, and even social theory). It provided the background for their findings (such as beauty, symmetry, divine perfection, etc.) and the reason why they found the world “just”, “right”, or “natural”. It sounds sort of contradictory that “the science of Fibonacci informs very little of life”. Science without philosophy makes nothing but motors. Science with philosophy makes everything, because it fills the science. Mathematics is the power of science without language and without philosophy or metaphysics, but with pure logic. Mathematics also has a spirit, but that of the God of the Philosophers (Epicurus). Gann will consider the God of Mathematics as his “personal God” and the God who is all in all and who resides in the realm of mathematics. Mathematics has a personifying quality, like a God or a demon or a ghost depending, but like a person, it is a creator of its own being. In this view publisher site mathematics is like music, where logic can be transformed to music.

## Astro-Numerology

There are no limits to logic, and any proof is beautiful, if it’s produced by visit our website The logic by which a person can view Fibonacci ratios doesn’t concern itself with the mechanics of that ratio, but