Golden ratio (Phi is an important number). Phi (1.618) has interesting properties that are commonly found in markets. Today we will have a closer look at the golden sum, it's lesser known (don't find too much about it) and can be calculated by taking sum and multiply it again with 0.618, in this way the golden sum will grow to it's limit of 2.618 as the extensions become smaller and smaller from the initial 1 length.
Mathematically the sum can be calculated with the following additions:
initial length = 1
0.618*1 = 0.618
0.618*0.618 = 0.382
0.618*0.382 = 0.236
0.618*0.236 = 0.1458
0.618*0.1458 = 0.090
... to infinity ...
___________________+
2.618
Hopefully you will find more meaning in the number 2.618 after this explanation and find it more significant in your trades.
-TheTrex
Mathematically the sum can be calculated with the following additions:
initial length = 1
0.618*1 = 0.618
0.618*0.618 = 0.382
0.618*0.382 = 0.236
0.618*0.236 = 0.1458
0.618*0.1458 = 0.090
... to infinity ...
___________________+
2.618
Hopefully you will find more meaning in the number 2.618 after this explanation and find it more significant in your trades.
-TheTrex