

The Fibonacci sequence can be observed within nature (growth), humans are an element of nature and human psychology can be observed within the structure and behaviour of markets.
The fibonacci sequence is expressed in  the way many natural things grow and expand, and this is reflected in market growth/decline patterns also, regardless of asset. Markets reflect the human as markets are the human (expression).

The Fibonacci growth curve can be equated as such. In the first picture the blue curve is the Fibonacci sequence (and growth rate but not time), each dot represents a number within the sequence starting at 1. The curve goes to infinity, of course the markets reverse before that.

The sequence is here:

1,1,2,3,5,8,13,21,34,55,89,144

The bull market starts off slow, actually stagnant for a short time (also in between major market phases/polarities). This is represented in the beginning of the Fibonacci sequence. So 1, 1, 2, 3.... this represents the slowest part of cycle. The 1,1,2,3 phase could equate to years, and this is a phase where nothing seems to happen and can seem like nothing ever will, and then against all disbeleif the market comes to life. 

This is represented on the gold chart in the picture and this phase lasts from about 2015 until about 2019.

In the latter stages of the cycle growth the eclipses the earlier stage where exponential amount of money are put into the market.

This can been see in the fibonacci sequence as you go from 8,13,21,54 etc


Thisbis whem things begin to ramp up, In the beginning there is a lack of trust in the market direction and hesitation, but as the market direction becomes more evident more participants enter the market, and this is displayed in the sequence and rapidly increasing growth.

Thi inverse is true as the market falls (bear market). As doubt and fear grow so does the growth of that phase of the market cycle.

On a side note, it seems that as the Fibonacci growth curve approaches phi in its ratio of multiplication there is either a pause or reverse In polarity, in the short term or long term (a market retracement or structural inversion (ie bear market where the cycle is inverted)).

Also 0% ,none of this has been created with ai. 


Fibonacci Sequence in Financial Market Trends