Figure 3-12 Figure 3-13

Now compare the formations shown in Figures 3-14 and 3-15. Each illustrates the natural law of the
inwardly directed Golden Spiral and is governed by the Fibonacci ratio. Each wave relates to the
previous wave by .618. In fact, the distances in terms of the Dow points themselves reflect Fibonacci
mathematics. In Figure 3-14, showing the 1930-1942 sequence, the market swings cover
approximately 260, 160, 100, 60, and 38 points respectively, closely resembling the declining list of
Fibonacci ratios: 2.618, 1.618, 1.00, .618 and .382.

Figure 3-14