Wednesday, April 17, 2013

Expansion to Pi



This is from an amazing book by William C. Garrett, Investing for Profit with Torque Analysis of Stock Market Cycles. Notice in the chart of Colgate that the final wave is exactly 61.8% of the previous; 161.8% the ratio of the one prior; 314.2% ratio of the first wave, or Pi. You could line all of these moves up according to the square to circle to ellipse diagram above. This is the same formula NASA uses to launch satellites into orbit; when they want to land a rover on Jupiter, they fire the boosters to get it into the next ellipse. (For those that don't know: Our galaxy, and hence all our planets, move in elliptical orbits.)