Do stock prices reflect Fibonacci ratios? by Herbert H.J. Riedel
ARTICLE SYNOPSIS ...Do stock prices reflect Fibonacci ratios?
by Herbert H.J. Riedel
The claim has been frequently made that Fibonacci ratios occur in stock market data. A Fibonacci ratio
is the ratio between any successive numbers of the Fibonacci sequence -- the Fibonacci sequence
1,1,2,3,5,8... produces the ratios 1, 1/2, 2/3, 3/5, 5/8....
After the first four numbers in the Fibonacci sequence, the ratios approximately equal 0.618, known as
the Golden Ratio or phi (f). Comparing one number in the sequence to the next lower number (8/5,5/3,
2/1. . .) produces ratios that approximate 1.618, the inverse of the G...