Fibonacci Ratios


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Fibonacci Ratios are the result of various factorings or inversions of one Fibonacci Number with or upon another. These are heavily employed in technical analysis for trendline tools as well as other indicators and practices.

The most common usage in trading is Fibbonacci Retracements. The standard set used by a large body of traders are 23.6%, 38.2%, 50%, 61.8%, 76.4% and 100% with 38.2% and 61.8% holding the greatest weight with most technicians.

Each ratio has a numerical relationship to its neighbor and the roots of Fibonacci numbers, the number Phi ( Ø ) 1.618 and its inverse ( 1 / Ø ) .618 as well as halves and doubles of numbers in the Fibonacci series.