This Concept is part of my ongoing study of Fibonacci Ratios applied to Assets. This Chapter is part of an album to collect examples of true "Golden Ratio" growth. This Chart captures the BCH.usd surge in early 2020 which grew by 1.618x increments.
This type of growth has been called "Exponential" or "Parabolic" by many analysts. This occurrence is actually NOT very common in markets at a scale we can see. This DOES occur at microscopic levels but is difficult to capture at those levels.
Some such growth spurts end in a Blaze of Glory as it comes crashing back down. Other such growth spurts continue indefinitely, never slowing down or looking back. Many such growth spurts come to maturity and continue onward in a Linear fashion.
Part of my ongoing series to collect examples of my Methodology: (click links below) Chapter 1: Chapter 2: Chapter 3: Chapter 4: Chapter 5: <= Current Example Chapter 6:
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Ordered Chaos
every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse.
each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect.
every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms.
He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos.
Ordered Chaos
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@Anikurrahman, Thank you!
Pretty amazing how the price follows the fibs.
And once it has, those levels become important for a long time because people/algos/indis will have all noticed the inflection points.
some traders will point to MA's, or chart patterns, etc, to explain the inflection points, but clearly it all comes down to simple math, .618 times anything is important!
dee718
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No projection.
arnnye27
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This looks so cool..So acording fib, (if i got this right), next stop gold line is at 17.89?
EuroMotif
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@arnnye27, yeah, IF the growth is to continue, it should go to the 17.89 multiple next.
But, and a big but: retraces can make just as big jumps now.
And a small but: each blue line in between can also be an endpoint.
Quite often, when at a "top", it does not reach the next Golden multiple, but instead fades away from a blue ratio in between...
But all in all the Gold lines are the big landmarks.
arnnye27
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@EuroMotif, Thanks for info ! But, fib retreace, i saw usually is lower then oposite (when market grows) ) . So if we go up with Y×1.61 fib, down side what fib value is?
arnnye27
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@arnnye27, I just put some maths on chart. Fib retreace is usualy about 1.25?
EuroMotif
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@arnnye27, it is hard to say what the retrace "should be".
It depends on "what wave order" is to be retraced.
If the entire move is to retrace, then it could erase 50-61.8% of the entire move.
But if only that last wave is to retrace, then erase 40-61.8% of two gold lines, which is about what it did.
so this is where I try some Elliott Wave concepts, in which case it looks like wave have completed a "wave 3", working on "wave 4" retrace, with "wave 5" up to come.
So I can expect perhaps one more small leg down to hit the 61.8 ratio of the two golds, but that another leg up should happen after that or now.
arnnye27
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@EuroMotif, Agree with the waves . Then normaly a big corection would be more logic after wave 5 at 670$, not at this point.
UnknownUnicorn3259845
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@EuroMotif, and what would be the price target be of this 17.89 ?