How to actually calculate Fibonacci levels
Fibonacci sequence
Start with zero and 1. 0+1 = 1, so 1 is the next number. 1+1 = 2, and so on.
1,1,2,3,5,8,13,21,34,55,89,144,233,377,610,987,1597
1st step Ratios
1:1, 2:1, 3:2 etc.
N/A, 1, 2, 1.5, 1.67, 1.6, 1.625, 1.615, 1.619, 1.6176, 1.6182, 1.61798, 1.61806, 1.61803, 1.61804, 1.618033, 1.618034, etc.
Inverse of 1.618034 = 1.618034-1 = 1/1.61803 = 0.618034
0.618 is the first ratio
2nd step Ratios
1:2, 1:3, 2:5, 3:8, 5:13, 8:21, 13:34, 21:55, 34:89, etc.
.5, .33, .4, .375, .385,.381, .382, .3818, .3820, .38194, .38197, .381963, .381967, .3819656, .3819662
Inverse of .3819662 = 2.618033 =~ 1 + 1.618034
3rd step ratios
1:3, 1:5, 2:8, etc.
0.33, 0.2, .25, .231, .238, .235, .2364, .2360, .2361, .23605, .23607, .236066, .236069, .236068
.236068-1 = 4.23607
The Fibonacci ratio of 76.4% is found as follows:
50-23.6 +50 = 76.4
4.23607/1.618034 = 2.61803
Pretty fascinating stuff
Of course you could find more and more ratios by finding ratios in increasing steps.
More stuff on the Fibonacci sequence:
Fibonacci Sequence