how to calculate fibonacci retracement levels
as discussed above fibonacci retracement levels do not require calculation they are simply percentages of whatever price range is chosen however the origin of the fibonacci numbers is fascinating they are based on something called the golden ratio start a sequence of numbers with zero and one then keep adding the prior two numbers to get a number string like this the fibonacci retracement levels are all derived from this number string after the sequence gets going dividing one number by the next number yields 0 618 or 61 8 divide a number by the second number to its right the result is 0 382 or 38 2 all the ratios except for 50 since it is not an official fibonacci number are based on some mathematical calculation involving this number string the golden ratio known as the divine proportion can be found in various spaces from geometry to human dna interestingly the golden ratio of 0 618 or 1 618 is found in sunflowers galaxy formations shells historical artifacts and architecture 