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Elizabeth

Fibonacci Numbers

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Have just discovered Fibonacci Ratios. Anything to do with seemingly unexplainable metaphysical patterns facinate me, but I am wondering, has anyone used them here? Do they appear to have a direct correlation to what really happens?

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Guest boredwaiting

Have just discovered Fibonacci Ratios. Anything to do with seemingly unexplainable metaphysical patterns facinate me, but I am wondering, has anyone used them here? Do they appear to have a direct correlation to what really happens?

I am no expert on these, but they have been mentioned a lot on this site. You should search the site.They play a big part in the stock market.... (or so i have been told)

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I am no expert on these, but they have been mentioned a lot on this site. You should search the site.They play a big part in the stock market.... (or so i have been told)

Hi,

Fibonacci numbers are central to Elliot Wave theory, this being part of Technical Analysis. In particular there is a thing call Fibonacci Retracement, however, IF you want a further explanation then ask Dr Bubb or BubblePricker.

Have a look on Wikipedia and see what is said

Best regards

Gary

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It is interesting stuff. But be aware that there is a venerable tradition of mystical powers being attributed to particular numbers in a wide variety of contexts and it's often illusory - the connection is often made between the Fibonacci sequence and the golden mean (the "perfect rectangle" where the ratio between the sides can be derived from an average of Fibonacci ratios). The golden mean was also often used for mystical purposes. The main problem with this kind of stuff, facsinating though it is, is that it's great for retrospective justifications. But generally not so good for predictions. The same might be said of chart analysis in general. It's very easy to see patterns in retrospect, and general shapes and tendencies from the past might well recur in the future. But that doesn't always allow you to identify the top or bottom of any particular curves.

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Elizabeth

Magpie makes some good points. Seeing what the charts are telling you is a lot easier after the event when everything has happened and nicely stands out for you. Doesn't always work out like that of course.

Robert Prechter is an Elliot Waver and he believes the Dow will ultimately go south in a big way. his 1995 prediction was 1000. I don't believe he's moved much on that since.

http://www.financialsense.com/editorials/g...n/2001/1203.htm

A couple more sites below which may be of interest to you.

http://goldennumber.net/

http://www.fibonnaci.com/

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Have just discovered Fibonacci Ratios. Anything to do with seemingly unexplainable metaphysical patterns facinate me, but I am wondering, has anyone used them here? Do they appear to have a direct correlation to what really happens?

Hi Elizabeth, I'm also a bit of a beginner with Technical Analysis. You might find the following link useful

http://www.investopedia.com/articles/technical/04/033104.asp

There is a point that charts are only useful in retrospect, but my understanding is that you use techincal indicators to improve the PROBABILTY of making a correct trade. There aren't any guarantees when trading, but using technical analysis reduces your risk by giving you higher probability successful trades. You will be bound to be wrong at some stage, but you set a stop loss at the level which you believe indicates that your prediction was wrong. I'm a fairly new investor here, but it's what I've gleaned from my studies :D

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If I want to make a profit but I make a loss, I have to cover the loss and do a little bit better next time.

Nature is very good at using(naturally selecting) these numbers. In a harsh environment it comes out winning - even though we are presently doing our best to bring an end to that.

You can see them in the way seeds are packed, in the arrangement of leaves to catch as much rain water as possible, in the proportions of our own bodies.

Perhaps in the same way the market 'selects' traders who follow the same laws?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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