What is BALANCE? I have search the Internet looking for a good definition of BALANCE and the only explanation, which fairly describes it, I could find was:   “BALANCE is a state of equilibrium or parity characterized by cancellation of all forces by equal opposing forces” definition by www.freedictionary.com.  So what really is BALANCE?  To me, it is: the most important law of  the Universe, the key of Mother Nature, the way of life, the solution to what is happening in us and around us – it exists and is visible everywhere but yet constantly ignored by us, humans.

Lets look at some basic examples taken from different aspects of our life:

Financial Markets:

Consider this trending graph (one of many) – As most experienced traders know, nothing goes straight up or straight down for extended period of time – there are market spikes and drops but right after correction must occur in order to balance the market out. You can find uptrend, downtrend (like the one in the graph), or side trend oscillating from high point to low point in a given channel – but never a continious straight line.  It happens in every market: gold, futures, stock, currency… – you name it.

Mathematics:  Fibonacci sequence (golden ratio)

“In the 12th century, Leonardo Fibonacci discovered a simple numerical series that is the foundation for an incredible mathematical relationship behind phi. Starting with 0 and 1, each new number in the series is simply the sum of the two before it. 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, . . The ratio of each successive pair of numbers in the series approximates phi (1.618. . .) , as 5 divided by 3 is 1.666…, and 8 divided by 5 is 1.60.”  (www.goldennumber.net) 

Fibonacci ratio exists in Nature and can be applied to everything.  It is also called the “golden ratio” since Fibonacci sequences appear in biological settings such as branching in trees, arrangement of leaves on a stem, the fruitlets of a pineapple, the flowering of artichoke, an uncurling fern, the arrangement of a pine cone, and many more. (Wikipedia).

To be continued …