HARMONICS ON NIFTY

    Harmonic numbers are the "Davinci Code" of most liquid financial markets. The numbers are derived from the Fibonacci summation series which starts with 0 and adds 1. Each succeeding number in the series adds the previous two numbers thus we have 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 to infinity. If you divide 55 by 89 you have the golden mean - .618. If you divide 89 by 55 you have 1.618.

.382 is the difference of 1.00 - .618 = .382

.618 is the golden mean (phi) and the square root of .382

.786 is the square root of .618

1.27 is the square root of 1.618 - it is also the hypotenuse of a right triangle

1.618 is difference of the square root of 4 minus .382 (2 - .382 = 1.618)

This ratios give some clues for guessing the extent of the moves.Chart shows the ratios on Nifty.
Happy Trading !