# Golden Ratio Speech

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Outline Topic: Golden Ratio A very good afternoon everyone, today I would like to share something to all of you which I find very interesting. First and foremost, let me tell you guys a story, long long time ago, the Greek Philosopher Pythagoras discovered the concept of harmony. In further studies of nature, he observed certain patterns and numbers reoccurring. Pythagoras believed that beauty was associated with the ratio of small integers. The discovered of Pythagos has result in the occurrence of the special ratio. This special ratio can be used to describe the proportions of everything from nature's smallest building blocks, such as atoms, to the most advanced patterns in the universe, such as unimaginably large celestial bodies. Nature…show more content…
Mathematicians and scientists has actually knew Golden ratio or called golden proportion for years . Golden ratio is known as the perfect proportion in measurement. It was discovered by dividing a line into two parts, the longer part and the shorter part. The length of the longer part divided by the shorter part equals to the total length of the line divided by the longer part. Therefore the golden ratio is approximately 1.618. The golden ratio is derived from something known as the Fibonicci sequence. It is a sequence in which each of the terms is simply the sum of the two preceding terms . For example, there is number 1, 1, then the third number is the sum of the previous two number which is 2, then subsequently 1+2=3, and so on. When we use this number as proportion, we can find that it is very close to golden…show more content…
Fibonacci retracements use horizontal lines to indicate areas of support or resistance. They are calculated by first locating the high and low of the chart. Then five lines are drawn: the first at 100%, the highest on the chart, the second at 61.8%, the third at 50%, the fourth at 38.2% and the last one at 0%. After a significant price movement up or down, the new support and resistance levels are often at or near these lines. Moreover, finding the high and low of a chart is the first step to composing Fibonacci arcs. Then, with a compass-like movement, three curved lines are drawn at 38.2%, 50% and 61.8%, from the desired point. These lines anticipate the support and and areas of ranging. Many people use combinations of Fibonacci studies to obtain a more accurate forecast. For example, a trader may observe the intersecting points in a combination of the Fibonacci arcs and resistances. Hence, I can make a small conclusion which is this golden ratio is useful in financial market