black candle, page-23

Just a word of caution. fibonacci ratio holds provided the system elements remain static. If FMS announce a 500mt JORC resource the SP is likely to shoot up rather than retrace. This is because a new element is introduced into the system. The base is altered and the ratio must be recalculated from the new base. This is something fibonacci watches do not factor in.
E.g. a group of 5 female and 5 male rabbits would increase by f ratio. Throw in another 5 female rabbits and the f ratio would not hold unless it is recalculated with a new base.
Try to figure out what would happen if 5 male rabbits are thrown in instead.

The bottom line is the f base is something like the company fundamentals.