The Golden Ratio: From Mathematical Definition to Common Applications
The golden ratio is approximately 1.618, describing a special proportional relationship between two quantities. It is often used to explain natural forms, artistic composition, and architectural design, and has also been incorporated into technical analysis by some market analysts; however, related market judgments are not deterministic rules.
The Basic Meaning of the Golden Ratio
The golden ratio is typically represented by the Greek letter φ, with a value of approximately 1.6180339887. If the larger quantity is a and the smaller quantity is b, then the relationship satisfies φ＝(a＋b)／a＝a／b when the ratio of a to b equals the ratio of their sum to a. This definition expresses a fixed proportional relationship.
Applications in Nature, Art, and Architecture
People commonly use the golden ratio to describe phenomena such as the arrangement of stems and leaves, shell spirals, tree branching, and human proportions. In discussions of art and architecture, it is also often used to analyze composition and scale, such as in the Parthenon and Leonardo da Vinci's Vitruvian Man. These examples show that the ratio spans both mathematics and visual design.
Relationship to Market Technical Analysis
Some technical analysts combine the golden ratio with Fibonacci retracement, paying particular attention to the 61.8% retracement level and treating it as a potential support or resistance reference. However, different analysts may interpret chart patterns and retracement positions differently, and such levels alone cannot prove that prices will move in a particular direction.
Original Tutorial
https://www.binance.com/zh-CN/academy/glossary/golden-ratio
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