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The Fibonacci and Golden ratio myth

Knobby22

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The Golden number or ration is a myth, from Michigan here is the minutes of a discussion from the Freethought Association but Dr Karl from the ABC and many others have made similar points.

I can't take them seriously as a trading tool.


The topic for this meeting was “The Myth of the Golden Mean” presented by Shane Van Oosterhout and Bill Fischer, Adjunct and Associate Professors at Kendall College of Art & Design in Grand Rapids. Shane took the lead in presenting, while Bill ran the visual presentation and fielded some queries. Shane opened with a story about how a co-worker asked in an insistent manner if he was worried about doing his presentation this night. He really was not but when he asked why she was so concerned, she reminded him that this was the opening night for Mel Gibson's film “The Passion of the Christ” and maybe there would be a poor showing to hear his talk. He thought how, with this group, such concerns were not really an issue. Further, he commented that while he is a triple threat””gay, vegetarian and an atheist, it is the last feature that is the least well accepted by most others.

With his work at an art college (that incidentally this Secretary graduated from), he is well aware of the ubiquity in which the Golden Mean- also referred to as the Golden Section, the Golden Rectangle and the Golden Ratio-- is taught in mainstream fashion in art education. It is a given””not to be disputed or questioned. It appears in textbooks and is promulgated authoritatively by professors and professionals of many disciplines and is simply a part of what is imbibed by each successive generation of neophyte designers by those wishing to integrate art with something supposedly ancient, arcane, and sublime and with the added bonus of its strong whiff of science and mathematics. This is all part of the “unwitting use of fiction as fact that permeates our culture”, as Van Oosterhout said it.

This form, believed to be the Ideal or even “Divine” one is constructed mathematically as .618 X 1. Anything created that includes these dimensions is alleged to be automatically more pleasing to the human eye. It is thought to be derived from something almost magical or otherworldly. Seen as transcendent and cosmological, it is believed to tap into some universal truth within humankind. Indeed, Carl Jung's work was usurped to include this formula as part of his concepts on the “Collective Unconsciousness.” Modern science has gone a long way in explicating the role of our genetics and evolutionary past on our perceptions and preferences and in finding certain forms and patterns to be evocative of specific concepts and ways of determining stimuli in predictable ways. But our presenters' focus was on exploding the myth of the innate perfection to the human eye and mind of the so- called Golden Ratio.

The success of the strong belief in the power of the Golden Section is one more of marketing than science, Van Oosterhout maintained. We examined the historical context for this putative truth and were not surprised to find that its origin was in Ancient Greece, often thought of as the wellspring of beauty, art, truth and of mathematical values standing in for deeper, more resonating concepts. Numbers were viewed as having certain hidden meanings, Magic Numbers revealed the names of gods and could tell the story of the cosmos. Sometimes names, where letters had certain specific numerical values, were refashioned to shoehorn them into the magic number set, to lend more credence to the power of the representation. Pythagoras (580-500 B.C.E.), the Greek mathematician and philosopher is credited for developing the theory of functions, and the theorem for right angles but also, germane to this discussion, the significance of numbers and how they relate to harmony in a more universal sense.

“Harmony” Van Oosterhout noted, is the term most strenuously bandied about in the art world. If a work lacks harmony, no matter its other characteristics, it is a failure. The Ancient Greeks related music, visual art and the deeper values of the universe by the idea of harmony, and some used lengths of string with their different sounds to correlate with mathematics in determining ideals. The planets themselves made musical sounds, in their belief system. These constructs of the Ancients were borrowed and misinterpreted to lend credence to the phrase “Nature reveals Truth about how to make things beautiful.” They were thought to be the progenitors of the Golden Mean, even though such a description would not coined until long afterwards, in the 19th Century. In many textbooks it is dogmatically asserted that the Ancients used the Golden Ratio, calling it by that name, even though there is no basis in historical fact for this.

Five sided shapes””pentagrams- were held to be imbued with special power, and one can easily bring to mind Satanic rituals using that form to call up demonic entities and even the Masons use the shape in their iconography. When wedded to the Golden Ratio, there was believed to be an embedded Divine power. The belief that calling something by name exerted a special power over, or connection with, the being named was tied into the numbers (transposed from these letter symbols) and forms that could be constructed by the proportionate values, so forms that harkened to specific geometric constructs captured all these aspects in one fell swoop. A story of the Divine, of Absolute Truth and Universal Beauty could all be told by certain mathematical formulations rendered in geometric shapes.

Popular reverence for the thinking of the Ancients waned but was revived during the Italian Renaissance, which is understandable since it was a time of a great explosion in ideas regarding art, science and mathematics and how they inter-related. Those swimming in these heady streams, looked to the Ancients to try to uncover how they arrived at the concepts they had generated. The human body was seen as the most sublime form in nature (after all, we were the Special Creation of God!) so much was referenced from its proportions. The navel held special significance, and this can be seen in many old religions where a centrality is conferred upon a place, lending it sacred meaning and as a sort of source point for the mystery and power of their beliefs. Geometric constructs that placed the human navel at some central point on the body (even though this is not technically the case) were held to depict something of a deeper truth.

A problem that arose from employing the body for a system of measurement was that different people in other locations used different systems even though based on the body””for instance, if one wanted to build a structure based on arm lengths, and another population used, say, forearm to leg proportions as the unit of measurement, then the architecture altered accordingly. Palladio (1508-1580), an important Italian Renaissance architect, was particularly influenced by the Classical thinking found in a work by one of the ancient Greeks, believing it to be the bridge between the ancient and modern worlds and a way to capture the sublime in architectural forms. This, in turn became highly influential to 16th Century European thought which funneled into current views that are seen in America too.

The Bauhaus School went a long way in promulgating the concept of the Golden Mean into American consciousness. It was founded in Germany by Walter Gropius in 1919 and emphasized simplicity, functionalism and craftsmanship. It also held to a more rigid mechanistic, linear and harder edged way of creating art and architecture. It was the antithesis of the French Curve. Art instruction became almost totally subsumed by the Bauhaus tenets of modularity and boxy structure. The geometric architectonic look became wedded to ancient Truths of Golden Proportions to represent the Way to represent beauty and grace and harmony in any artistic work. Le Corbusier (Charles Edouard Jeanneret; 1887-1965) was a powerful proponent of this view. His writings and innovative buildings were seen to express a revolutionary approach toward aesthetic and architectural problems, and took an industrial, utilitarian approach. He was a co-founder of the short-lived Purism movement in art, also, that portrayed Cubism in a cleaner and more sterile way. His work influenced modern American towering building designs.

The decorative and curvilinear in art took a back seat. Art that was flattened, straight-edged or cubed was the new ideal. The Dutch artist Piet Mondrian founded the Stijl group and developed a geometric style that came to be referred to as “neoplasticism” typified by by primary-colored squares bounded by black outlines. His work was (incorrectly) thought of as capturing the Golden Section ideal along with the Bauhaus conception of beauty.

In Victorian times, it was fashionable to take images of architecture or nature and put tracing overlays on them to “reveal the Truth of the Golden Section” in them. In the former, it examined how close to the Ideal the human-made forms approached, and in the latter it was to reflect the innate universal beauty and harmony of natural compositions.

One of the contemporary artists that was presented to us by Van Oosterhout and Fischer was a woman named Billie Ruth Sudduth, who “studied” Native American baskets and found in them this same perfection of the Golden Ratio, believing that they had tapped into this Truth as well. She now incorporates basket making with her sense of sublime mathematics in what she calls “Math in a Basket” where she believes she is illustrating math principles to sixth and seventh graders via basket making.
 
Re: Fibonacci and Golden ratio myths

- the remainder of the article.

Just as the Victorians were placing the Golden Rectangles over images, this template has been placed over all sorts of items in the environment by others, seeing it expressed in everything from nautilus shells to seed arrangements to the curve of an elephant's tusk to the famous example of the Rose Windows of Chartres Cathedral. These mostly curved forms are primarily based upon the forms generated by the Fibonacci numerical series. Leonardo Fibonacci (Italian mathematician; 1170-1250) helped introduce Hindu-Arabic numbers to Europe. His series illustrates numbers in which each term is the sum of the two preceding terms. Forms constructed on this principle ripple outward in an exponential growth pattern.

Interestingly, when one troubles oneself to actually superimpose the above-mentioned forms over a real Fibonacci series construct, the pattern is wildly divergent, with no sense of direct correspondence. Van Oosterhout took us through example after example where the Golden Ratio on which a work of art or nature was supposed be based failed to match up when the actual measurements were made. None of the artists and architects (or architectural structures) mentioned throughout from the Bauhaus darling, Mondrian, to Le Corbusier; from the Parthenon to the Mona Lisa, actually used the Golden Ratio or fit within the parameters thereof. When people retrofit this formula on structures and paintings, and are honest, they say that they “almost” or “nearly” or “approximate” the dimensions of the G. Proportion. While human perception is fluid and flexible; influenced by culture, training, and a myriad other elements, mathematical constructs are exacting. The idea of approximating, where something is made to fit a presupposed ideal, no matter how poorly, is not the stuff of math and science. We are pattern-seeking and seeing animals, which confounds critical thinking skills and makes us suckers for belief in the innate power of certain patterns that we then find everywhere””even when they are not there to be found..

Math is a tool used to measure and describe the environment””a human construct-- not something generated by nature and the environment. “Mathematics does not cause the fabric of the universe that it measures” as Van Oosterhout stated. We were shown two exact copies of a simple treasure map with two ways of telling the treasure hunter how to get to the buried riches. The math was different in both cases and our presenter showed how many more ways could be pressed into the same service, including using words instead of numbers. The maps depicted all the salient features necessary to find the treasure but there was no innate, magical or Golden formula in them. We were also shown two versions of Leonardo da Vinci's famous man with the proportional ratios laid out around the figure. One showed how the Golden Ratio was found in the V. Man, but the second showed a completely different, though every bit as likely a construct, based on the same figure but having nothing to do with the G. Proportion. This drawing of Leonardo's and nearly all of his oeuvre is given ceaselessly as examples of artwork being based on the G. Ratio but when it can indeed be found in some way, it seems more coincidental””more an artifact of human ingenuity in making patterns fit””than in any mathematical or artistic device used by the master artist. As Shane mentioned, many sound works of art have any number of focal point references in them. The greater the number of such points, the easier it is to overlay Golden Rectangles upon them.

We were also shown how our affinity for the Golden Rectangle is completely context driven. Our preferences for rectangular dimensions change, depending upon what is to fill those dimensions. This is whether there is already an image contained therein or if people are asked to select the most appropriate and pleasing proportions for a rectangle to later contain an type of scene. The choices made a Golden Mean completely irrelevant.

One amusing visual that our presenters gave us showed the Great Pyramid of Cheops, which of course also was supposed to be built on the principles of the Golden Ratio (even though there was not the cultural exchange possible then to make this sensible). A photo of the actual ancient structure was shown next to what the actual G. Ratio would give for proportions and they were wholly different. The pyramid would have to be 800 feet tall by 800 feet at the base to fit the proper dimensions.

The problem is when something that has great explanatory value and utility like mathematics is misapplied to things in the environment for the purpose of generating a certain foregone conclusion. Art is often viewed as extremely imprecise and messy. If one can lasso something that seems to confer mathematical precision (not to mention absorbing ancient truths and mysterious, arcane knowledge) to a work of art, this bestows upon it great value in the eyes of many. It is almost like a form of “physics envy” for artists.

Critical thinking, Shane asserted, should be used in every sphere of study, including the arts. Artistic “truths” must be tested, just as scientific hypothesis are, in order to gain validity. Modern findings on human perception, genetics, socio-cultural influences, the electro- chemical biological processes of sight, etc. should all looked into for learning ever more deeply about how we interpret the world.

Slapping an errant concept like the Golden Mean on art training that is absorbed uncritically and adhered to unquestioningly, does a real disservice to the arts and sciences both. It is a seductive idea that sells books and, like religious concepts, gains power by dint of being told repeatedly for a long long time, not for any actual accuracy inherent in the ideas. Also as with religious convictions, such errant myths as the Golden Ratio are imparted by authority figures and stem from ancient times, lending an automatic imprimatur to the concepts. Who are you, one might think, to challenge something held by the best textbooks, imparted by learned professors and handed down from the ancient Greeks and used throughout history in the making of the greatest works of art and architecture! But sometimes the Emperor simply has no clothes.

http://www.freethoughtassociation.org/minutes/2004/Feb25-2004.htm
 
Knobby22

Mathematically, the Fibonacci numbers and Golden Ratio exist.

Whether you believe they exist in nature on not depends on whether you accept the proof given in examples like those given in the website I posted earlier.

Personally I accept they exist in nature as well.

Now, whether you think they are useful in trading or investment analysis techniques is another ball game alltogether.

Share price movements are largely driven by human emotions - fear and greed - which Fib's and the Goldcen Ratio do not take into account at all according to my understanding because they don't apply.

So like for all technical indicators and tools like the macd, stoch's, Fib's etc etc human emotions will lead to technical indicators, on some occassions, giving misleading or false signals. That is simply a given for TA.

Also, correct me if I am wrong, I read somewhere that anyone can alter or modify the info posted on Wikopedia. So if that is correct then I wouldn't necessarily take as true what I read on there.
 
Exactly, which is why you can't trust Wikopedia.
Myths die hard. The earth is still flat for some people.

K22
 
For those being spoon fed be warned the Fib ratios are not going to make you predict the future. For those using intelligent thought then you will understand their value and also their weakness.
 
ok knobby - at least we agree on something :)

but that doesn't mean everything on wikopedia is not accurate. I've never been to wikopedia and so I don't know or care what is on there.

I use fib's on charts to get a feel for possible price targets and more often than not they give a pretty good guide.

The mathematics is sound and real imo but human emotions, which are not taken into account with Fib's, not being an exact science by any means implies that it is dangerous to put too much emphasis on Fibs, or any TA indicator, for share price TA - but they are a good guide imo.
 
Lots to say (Which is unusual!!) but no time at present----later.
 
What has someones opinion on a tool used by artists got to do with trading?
As with all trading, whatever your persuasion, it is not the tools themselves but how you apply them that counts.
 
After reading the evidence presented its pretty clear that Mathamatics can be used to PROVE anything you like and used to DISPROVE anything you like.
In this case Fibonacci.

As for the use of Fib in trading---where traders go wrong in my veiw is they are under the false impression that Fibonacci (Any of the numbers) are ALWAYS accurate.Simply they are not.

Just as the use in Elliot Wave analysis is also not 100% accurate--or Gann (Who uses gann ratios) also are not.

They are however areas or levels which to watch.

As an example a trend that pulls back and takes off again from a .382 level would be considered stronger than one that pulls back to .5 or .618 before re testing a high.

A 3rd wave Elliot move (From Experience) should be watched at the 100% level of the last corresponding wave 1 measurement and if it continues then the 1.618 level.Many times in short term trades it has helped me sell for maximum gain in THAT move.
Check the DYL thread to see just reciently how I used it in that trade.

I cant explain why these numbers do occur frequently enough to cause me to sit up and take notice to the extent that I will place a sell at close to their extreme and be close enough to be glad I did more often than not.

Basing them as ABSOLUTES is crazy and not a sound trading practice in my view.But to totally discard the idea as nonsence is equally as crazy.

The choice is that of the traders.
the arguement is and will have two sides infinitum.
 
Space Cadet said:
Knobby22

Also, correct me if I am wrong, I read somewhere that anyone can alter or modify the info posted on Wikopedia. So if that is correct then I wouldn't necessarily take as true what I read on there.

People edit articles on Wikipedia and we can't trust them always.
 
Knobby22 said:
Exactly, which is why you can't trust Wikopedia.
Myths die hard. The earth is still flat for some people.

K22

I think that the use of Elliot wave & Fibonacci numbers definitely give you a better chance than random of finding probable entry's / exits.They can also help with the psychological effects of trading, giving a reason to place a stop, or tighten a trailing stop to a probable ending area of a wave.Maybe this is because it is a self fulfilling prophecy, who knows, either way if it can give an edge, use it I say.

As for Donald E. Simaneks' article, he certainly gives Fibonacci a bad press.The only part I agree with is that maybe it is appealing because of the mystical element, but then again the human race likes mystic.

Just look at how many people believe in a superior being, as in God, Allah or whoever.Absolutely no proof at all that these or anything like these exist, but people believe.
 
tech/a said:
After reading the evidence presented its pretty clear that Mathamatics can be used to PROVE anything you like and used to DISPROVE anything you like.
In this case Fibonacci.

Is that linear or non-linear mathematics?
 
Who cares if it works? I looks pretty cool on a chart and it sound sexy when explained to noobs. :D

But concur with Kaveman. It's not the tool, it's the tradesman.
 
:)

Hi folks,

Just to add a little more fuel to the fire ..... :)

Respectfully, Fibonacci simply claimed a long-standing
principle as his own work, when further research reveals
that Pythagoras also knew about the same mathematical
sequence, about 400 BC ... !~!

For further details, refer to Pythagoras' Music of the Spheres .

In fact, if you do some more research on the same sequence,
it is found in the NATURAL growth cycles of many animal and
plant species ... ie tree rings, crabs, worms, etc, etc, etc

..... and you can also add the OLDEST evidence in the same
sequence ... the ratio of Venus/Earth planetary movements
arounnd the sun, expressed in days:

226/365.25 = .6187542 = reciprocal of 1.618

Given THAT SAME planetary relationship has been in existence
since creation, there's nothing new under the Sun ..... :)

happy days

yogi

:)

=====
 
All not true yogi.
Read the articles in this thread, there is an article about the stars, planets too if you look in google under myths.

K22
 
:)

...... puhleeeze knobby,

We are talking about the same mathematics that
sends rockets through our solar system and into
outer space ..... without such accurate and established
planetary correlations, there would be no such exploration !~!

happy days

yogi

:)
 
I was interested to see if this ratio did infact exist in the ratio of the Earth/Venus year length.

So I went the the foremost authority NASA, the people that rely on mathmatics to send rockets to the planets.
Here is their info on the Earth /Venus ratio

http://nssdc.gsfc.nasa.gov/planetary/factsheet/venusfact.html

Look under Orbital Parameters and you will find that the Venus year is not 226 days but 224.7 which gives a ratio of 0.615

There is no golden ratio or even reciprocal in the relationship, unless you fudge the figures to fit the theory.
 
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