# The market, golden ratio, and the sequence

Market Dynamic and Nature
Nature is the biggest enigma, that we as Human always try to decode. For Centuries, we have been trying to understand everything and find out many secrets around the Universe. We have come very far from living in caves to being able to travel to the moon. The reality is that Nature is a divine creation and consequently there are many secrets which we have not been able to see or maybe will never be able to decode. The Golden ratio is a special number found by dividing a line into two parts so that the longer part divided by the smaller part is also equal to the whole length divided by the longer part. It is often symbolized using phi, after the 21st letter of the Greek alphabet. In an equation form, it looks like this:
a/b = (a+b)/a = 1.6180339887498948420
This divine Math relationship is seen every day in the Markets and many traders need to understand the way the Nature is working in the Market. We have seen many times that retracements end at the 61.8% and start a new cycle. Also, we have seen many times how a wave 3 ends at the 1.618 extension of wave 1-2 relationship. We always preach to understand that the Market moves based on Math and the relationship between the 61.8-1.618 and how subdivisions of the Gold ration move the Market and dictate the cycles in Price and Time. Subs of the Golden Ratio are 23.6-38.2-50.0-76.4 in the Retracements and 0.618-1.00-1.236 and 1.618 also rule the extensions .This dynamic have been trading for years and the same way it rules the Nature, also rules the Market. Many traders try to trade using the Indicators provided by third party entities like Brokers and Trading Platforms which have nothing to do with the divine nature of the Universe and end up losing money. On the other hand, using the divine sequence and consequently the Golden ratio, traders will have a more divine and logical way to make money. Our Human body is a perfect example of the Golden ratio and even when not everyone is the same height, the ratios are in general the same as shown in the figure below.
The Enigma will stay forever and we will never find out why mother Nature is so divine, but we can’t fight it and try to change it, so to succeed in trading, we need to follow the divine rules and follow the Math behind it. The Elliott wave Principal was discovery almost 100 years ago but, the divine nature cannot be denied behind the relationship of the waves. Like always a human being is able to see the relationship of the Golden ratio and the natural patterns the Market follows.
In Elliottwave –Forecast, we have always been looking for ways to improve the Principal and we study for years the relationship between the Math and waves. The market respects time after time the retracements and extensions in every cycle not only in price but also in times. The golden ratio rule the market and dictates the market moves knowing how to mix the cycles and the time periods will make a trader successful something that we have developed in Elliot-wave forecast.