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Phi for Neo-phi-tes
What is Phi?
Phi (
= 1.618033988749895...
), most often pronounced fi like "fly," is simply an irrational number like pi (
p = 3.14159265358979... ), but one with many unusual
mathematical properties. Unlike pi, which is
a transcendental number, phi is the solution to a
quadratic equation.
Phi is the basis for the Golden
Section, Ratio or Mean
The ratio, or proportion, determined by Phi (1.618 ...) was known to the
Greeks as the "dividing a line in the extreme
and mean ratio" and to Renaissance
artists as the "Divine Proportion"
It is also called the Golden Section, Golden Ratio and the Golden Mean.
Phi,
like Pi, is a ratio defined by a geometric construction
Just as pi (p)
is the ratio of the circumference of a
circle to its diameter, phi ( ) is simply the ratio of the line segments
that result when a line is divided in one very special
and unique way.
Divide a line
so that:

the ratio of the length of the entire
line (A)
to the length of larger
line segment (B)
is the same as
the ratio of the length of the larger
line segment (B)
to the length of the smaller
line segment (C).
This happens only at the point where:
A is 1.618 ...
times B and B is
1.618 ... times C.
Alternatively, C is
0.618... of B and B is
0.618... of A.
Phi with an upper case "P" is 1.618 0339
887 ..., while phi with a lower
case "p" is 0.6180339887, the reciprocal of Phi and also Phi
minus 1.
What makes
phi even more unusual is that it can be derived in
many ways and shows up in relationships throughout the universe.
Phi can be derived through:
Phi appears in:
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Investors:
Apply
Phi and
Fibonacci
principles
to the
stock market |
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