I've been studying how fib levels work. Sometimes they work, sometimes not. I know the Fibonacci Sequence is related to the Golden Ratio. I am a bit of a mathematician, also did some hunting for what this stuff actually means in relation to prices going down and up. I've come to a tentative decisions:
The Golden Ratio is kind of a borderline between linear, polynomial, and exponentiel development. It is useful as a boundary on expansion rate.
The 61.8 fib amount reflects the reverse of the Golden Ratio and is the sole fib degree that actually applies to increase. It represents space to grow, the space where something most efficiently expands as it attempts to rise exponentially in linear steps with time. It is the magnitude of a sprout in relation to the magnitude of a seed.
Concerning a market, growth and expansion have nothing to do with price, only volatility. Fib levels only apply to periods of volatility expansion.
The period of volitility expansion is officially over when the 61.8 is broken. Price then contributes to linear shift with time.
None of this says anything about which direction price is about, just how fast it's changing. However, if price isn't going in a certain direction, fib levels are useless anyway.
I think I've come up with a different method of considering a tool a lot people have been utilizing mindlessly for quite some time. I am beginning to think that all success in trading is based on how volatility is handled, and this may be a big hint.
I have some ideas about how to use this practically, however I want to find some counterexamples. Show me a chart where volatility grows and goes sky high, then down through a 61.8 degree, and volatility then will not quiet down for some time.