Fibonacci Basics

Look, I could build out an entire course on Fibonacci and the associated applications. In fact, I may do just that in the future. There’s a ton of information that goes into the computations and the thought process behind everything. The reality though, is that you don’t need the proof to apply the techniques. This course isn’t a PhD level course that requires papers upon papers of a dissertation. Instead, I simply want you to be able to apply the fib tools as it relates to the Wave Principle. As such, I’ll give you an overview of why we use fibs and how truly important they are in the Wave Principle, but I’ll spare you all the high level math.

First and foremost, what is the Fibonacci sequence?

As I said, I’ll spare you the process of how it came to be – you’ll just have to press the ‘I believe’ button for now. The fibonacci sequence is a series of numbers that when adding the two previous numbers will generate the next in sequence. Or, if you prefer the mathematical vernacular, “The sum of any two adjacent numbers in the sequence forms the next higher number in the sequence.”

0,1,1,2,3,5,8,13,21,34,55,89,144,etc.

When we take these numbers and add some operators (mutliplication, division, etc.) we come up with a bunch of ratios, like .382, .618, 2.618, 4.236, etc.

Like I said, there’s tons of math here, but the important part is to understand how to use the tools moreso than the proof behind the math. The video in this lesson will cover some really cool aspects of how Elliott introduced the fibonacci sequence and the golden ratio in the financial markets. Be sure to pay close attention to this video for that ‘ah-ha!’ moment.