Fibonacci Technical Analysis – Predicting Price

Fibonacci Market Watch: The Authority in Fibonacci Technical Analysis. 


Fibonacci Technical Analysis will provide traders with valuable insights into market trends before they occur. Wall Street has a long history of receiving/knowing market-moving information before retail investors, thus giving them a critical advantage. Time. 

 

FibMarketWatch implements the following fibonacci instruments:

  • Fibonacci Spirals

  • Fibonacci Time Sequences

  • Fibonacci Level Extensions

  • Fibonacci Time-based Extensions

  • Fibonacci Channels

  • Fibonacci Circles

  • Fibonacci Retracement

  • Fibonacci Speed Fan

FibMarketWatch combines Fibonacci instruments with Wave Theory concepts:

  • Wave Sequences

  • Correction Sequences

  • Complex Correction Sequences

  • ZigZag Corrections

  • Flat Corrections

  • Expanding Diagonals

  • Contracting Diagonals

The Combining of Wave Counts with Fibonacci Sequences can predict price-action and price to a high-degree


 

Wave Theory & Fibonacci: Origins

 

Fibonacci 

 

Fibonacci

In the Liber Abaci (1202), Fibonacci introduced the so-called modus Indorum (method of the Indians), today known as the Hindu–Arabic numeral system.[18][19] The book advocated numeration with the digits 0–9 and place value. The book showed the practical use and value of the new Hindu-Arabic numeral system by applying the numerals to commercial bookkeeping, converting weights and measures, calculation of interest, money-changing, and other applications. The book was well-received throughout educated Europe and had a profound impact on European thought. No copies of the 1202 edition are known to exist.[20]

Liber Abaci posed and solved a problem involving the growth of a population of rabbits based on idealized assumptions. The solution, generation by generation, was a sequence of numbers later known as Fibonacci numbers. Although Fibonacci’s Liber Abaci contains the earliest known description of the sequence outside of India, the sequence had been described by Indian mathematicians as early as the sixth century.[23][24][25][26]

In the Fibonacci sequence, each number is the sum of the previous two numbers. Fibonacci omitted the “0” included today and began the sequence with 1, 1, 2 … He carried the calculation up to the thirteenth place, the value 233, though another manuscript carries it to the next place: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377.[27][28] Fibonacci did not speak about the golden ratio as the limit of the ratio of consecutive numbers in this sequence.

The 1228 edition, first section introduces the Hindu-Arabic numeral system and compares the system with other systems, such as Roman numerals, and methods to convert the other numeral systems into Hindu-Arabic numerals. Replacing the Roman numeral system, its ancient Egyptian multiplication method, and using an abacus for calculations, with a Hindu-Arabic numeral system was an advance in making business calculations easier and faster, which led to the growth of banking and accounting in Europe.[21][22]

The second section explains the uses of Hindu-Arabic numerals in business, for example converting different currencies, and calculating profit and interest, which were important to the growing banking industry. The book also discusses irrational numbers and prime numbers.

 

Ralph Nelson Elliot


 

 

The Elliott wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call “Elliott waves”, or simply “waves”. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature’s Laws: The Secret of the Universe in 1946. Elliott stated that “because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable.”[1] The empirical validity of the Elliott wave principle remains the subject of debate.

Sometime in the late 1930s, Ralph Nelson Elliott revealed to the world his fantastic discovery. Sure, all human beings tended to behave in a predictable manner when they acted as a crowd. But Elliott found patterns of behavior in the stock market that kept repeating itself over and over again. He likened the ups and downs in the markets to cyclical patterns. True, the idea of market cycles existed even before Elliott came forward with his ideas.

 

But our protagonist took it a step further. He spoke about different degrees, starting with the Primary Wave, and continuing down the scale with an intermediate, minor, minute, minuette and finally a sub-minuette cycle.

What has Elliott given us? In an uptrend, or a bull phase of the market, he found that prices went up in five waves. Three of these were in the upward direction, and he called these waves ‘impulse waves’. Each of the three waves was followed by a downward movement, which he called a ‘corrective wave’.

Credits:

https://en.wikipedia.org/wiki/Fibonacci

https://en.wikipedia.org/wiki/Ralph_Nelson_Elliott

 

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