Fibonacci numbers and the golden ratio seem to be shrouded in myths and misconceptions.

The majority of plants have a Fibonacci number of petals due to the optimal (uniform) packing of the seeds which creates a Fibonacci number of spirals in each direction. They exist, it seems amazing, but we understand why.

Fibonacci numbers do *not* exist in ancient architecture, old paintings, the human body or financial markets. Nor is there anything inherently aesthetically pleasing about the ratio. These are all urban legends.

Fibonacci numbers are of mathematical interest. It is also interesting that the human mind extrapolates something that exists in nature for reasons that are understood to areas where it doesn't exist, and has no reason to exist. I guess we all enjoy a mystery. :-)

"The Kalman filter can help construct better smoothers. Although we do not delve deeply into the matter, we believe that this approach may very well contain the seeds of reasoning for the observation of the so-called Fibonacci retracements, which is well documented in the area of technical analysis."

Vidyamurthy (2004) page 54

Yeung et al. (2002) found that using Fibonnacci Retracrments failed to work.

Zielonka (2000) found that more than 60% of respondents market Fibonacci proporsions as having predictive value.

- BATCHELOR, Roy and Richard RAMYAR, Magic numbers in the Dow
- FISCHER, R. and J. FISCHER, 2003. Candlesticks, Fibonacci, and Chart Pattern Trading Tools: A Synergistic Strategy to Enhance Profits …. print.google.com. [not cited]
- FISCHER, R., J. FISCHER and R. FISCHER, 2001. The new Fibonacci trader: tools and strategies for trading success. print.google.com. [not cited]
- KNOTT, Ron, The Fibonacci Numbers and Golden section in Nature
- Laputan Logic, The Cult of the Golden Ratio
- MARKOWSKY, George, Misconceptions about the Golden Ratio
- NABIL, M., Projected Fibonacci Targets.
*dacharts.com.*[not cited] - YEUNG et al., Does Technical Analysis Work?
- ZIELONKA, Piotr, Biased Judgements on What Moves Stock Prices: How Financial Analysts Perceive Macroeconomic, Political News and Technical Analysis Signals