I've recently actually taken an interest in the Fibonacci retracement tool. . .but something's been bugging me, and that is that the 61.8% ratio. What's it about this amount that makes it the most important of all the ratios? I've heard it be called the golden ratio, but do not understand why.
Is there a motive? Or is it merely something that's been ingrained into the minds of most traders, that the motives do not matter.
I've been trading the EUR/USD since the onset of the downward trend in December and saw it pretty much discount the rest of the Fib retracement levels and just in 61.8% did it find real support, (which I'm glad we have finally broken through).
I'm just confused in this ratio. Don't understand why it's the most crucial one of the bunch.
Any ideas?