What is Fibonacci Ratio?

The Fibonacci ratio (also called the "golden ratio") describes predictable balancing patterns in elements found throughout nature, including atoms. It is named after Leonardo Fibonacci who lived around 1200 A.D. and is credited with discovering the ratio. In the Fibonacci sequence, each number is the sum of the two preceding numbers (1, 1, 2, 3, 5, 8, 13, etc.). Four main techniques are used to apply the Fibonacci sequence to finance: retracements, arcs, fans, and time zones.