Fibonacci and Gann Applications in Financial Markets

4 Fibonacci and Gann Applications in Financial Markets
6
5
4
3
2
1
0
Although this looks complicated, making the above equal to x, it breaks down to
resulting in x once both sides are multiplied by x. Therefore, using the
quadratic solution of
2 � x � 1
x � �b ; 2b2 � 4ac
2a
gives
1 2 3 4 5 6 7 8 9 10 11 12 13
x � �(�1) ; 2(�1)2 � 4.1(�1)
2.1
Figure 1.2
Table 1.2
n 1 2 3 4 5 6 7 8 9 10 11 12 13
F 1 1 2 3 5 8 13 21 34 55 89 144 233
1 2.000 1.500 1.667 1.600 1.625 1.615 1.619 1.618 1.618 1.618 1.618
2.000 3.000 2.500 2.667 2.600 2.625 2.615 2.619 2.618 2.618 2.618
3.000 5.000 4.000 4.333 4.200 4.250 4.231 4.238 4.235 4.236
x � 1 � 1
x
with a � 1, b ��1 and c ��1 (from x 2 � x � 1 � 0)
� x �
1 ; 21 � 4
2
� x �
which results in x � 1.618 033 9 (�) and �0.618 033 9, which is �1/�.
Fn/Fn-1
Fn/Fn-2
Fn/Fn-3
1 ; 25
2