Phi: The Golden Ratio

Also referred to as the golden mean, golden section, golden number or divine proportion, the golden ratio is a number, approximately 1.618, that possesses many unusual mathematical properties. Over two thousand years ago phi was identified by Euclid because of it’s crucial role in the construction of the pentagram. Since then the ratio has been discovered in numerous forms in nature, from mollusk shells to the shapes of gallaxies containing billions of stars.

The ratios of Fibonacci numbers converge on phi. Fibonacci numbers were used by W.D Gann and R.N. Elliott, pioneers in technical analysis of the financial markets. Elliott Wave Analysis is based on repetitive wave patterns and the Fibonacci number sequence.