Here's how to use Golden Ratio and Fibonacci sequence in trading

The golden ratio is typically translated into three percentages: 38.2 per cent, 50 per cent, and 61.8 per cent, which are considered key retracement levels for a stock or an index.

The Golden ratio -- 1.618 -- is derived from the Fibonacci sequence, named after its Italian founder, Leonardo Fibonacci. In the sequence, each number is simply the sum of the two preceding numbers (1, 1, 2, 3, 5, 8, 13, and so on). When further translated into percentages, this ratio can be used in the stock analysis and mainly uses four techniques: Fibonacci retracement, arcs, fans, and time zones. 

In technical analysis, the golden ratio is typically translated into three percentages: 38.2 per cent, 50 per cent, and 61.8 per cent, which are considered key retracement levels for a stock