BSE & Fibonacci

im3vil · #1 11th January 2005, 11:44 PM

Fibonacci Time series working at its best!

we cud get the latest top from it.

kkz59 · #2 12th January 2005, 10:56 AM

Dear

What is this Fibonacci - other than finding the name or should I use 'word' sounding nice - I am totally ignorant. Has this got something to do about reaching tops and lows after certain no. of days. Sorry to be sounding like in LKG (or is it nursery)

Further what is the conclusion that you have drawn from the attachment.

Thanks and regards

im3vil · #3 12th January 2005, 03:45 PM

Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt.

Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers:

1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, etc

Fibonacci Time Zones/series are a series of vertical lines. They are spaced at the Fibonacci intervals of 1, 2, 3, 5, 8, 13, 21, 34, etc. The interpretation of Fibonacci Time Zones involves looking for significant changes in price near the vertical lines.

You can see that significant changes in the Industrials occurred on or near the Time Zone lines.

hope that helps.. but then again if ur frm LKG .. i really DOUBT.

amh · #4 12th January 2005, 04:10 PM

Thanks im3vil. It is very informative. I know it helps in timing the market and in metastock we have an indicator of fibonacci numbers but I still wonder as to what made Mr.Fibonacci to invent these numbers way back in 1170. Was there any speculative markets at that time also?

binzy · #5 12th January 2005, 05:08 PM

im3vil, thats very interesting. Do you find that relationships exist whether you use trading days or calendar days? Also, some longer-term Fibonacci numbers would be wonderful, say from the Feb '00 top. The bigger the number, the more important the change in trend, is it not?

im3vil · #6 12th January 2005, 06:38 PM

Quote:

Originally Posted by amh

Thanks im3vil. It is very informative. I know it helps in timing the market and in metastock we have an indicator of fibonacci numbers but I still wonder as to what made Mr.Fibonacci to invent these numbers way back in 1170. Was there any speculative markets at that time also?

He was a Math guy.. not a trader

u can read more bout him here.

http://www-groups.dcs.st-and.ac.uk/~...Fibonacci.html

im3vil · #7 12th January 2005, 06:41 PM

Quote:

Originally Posted by binzy

im3vil, thats very interesting. Do you find that relationships exist whether you use trading days or calendar days? Also, some longer-term Fibonacci numbers would be wonderful, say from the Feb '00 top. The bigger the number, the more important the change in trend, is it not?

And the answers are :

1.I use Calender Days.. nature doesnt have holidays.. does it ?

2. Not necessary

im3vil

kkz59 · #8 12th January 2005, 06:49 PM

Thanks im3vil.

I am from LKG, but have learnt 0 to-day from you. I would like to be a tortise in learning. I have taken the first step.

I am really fascinated by all of your posts on Mr.Fibonacci. Maths has been a pet subject all my life.

Thanks once again

im3vil · #9 12th January 2005, 06:53 PM

Quote:

Originally Posted by im3vil

He was a Math guy.. not a trader

u can read more bout him here.

http://www-groups.dcs.st-and.ac.uk/~...Fibonacci.html

Ok guys and gals. one more illustration of the power of Fibo!

This is a realtime setup of my todays trade.
I haveused fibonacci retracement for this one to get todays bottom

The chart explains all!
and in case if u all wondering wht is fibo retracement.. ask binzy.. she seems to have a group for every topic in technical analysis !

binzy · #10 12th January 2005, 10:33 PM

Dear 3vil, I'm not here-there-n-everywhere... I'm just where YOU are

I don't quite understand why larger Fibonacci numbers are not considered more significant. If that were the case, we would be having to start our count from major tops/bottoms even before we know they have been formed. For instance, anticipating a change 233 days from a peak is so much easier and more significant than counting 1,2,3,5 or even 8 days after it. Larger numbers seem to be more significant for the simple reason that they create longer-term relationships, and its for the same reason that a 61.8% swing intra-day is far less important than one forming over 10 years.

As for calculating only on the basis of calendar days... I do think trading days should be accounted for as well. For example, the Jan '04 top was formed approx. 987 trading days (973 to be precise) after the Feb '00 top.

Found two articles on those interested in Fibonacci:

http://www.mcs.surrey.ac.uk/Personal/R.Knott/Fibonacci/fib.html

http://www.futures-investor.co.uk/market_cycles_and_fibonacci.htm

Similar Threads for: BSE & Fibonacci
Thread	Thread Starter	Forum	Replies	Last Post
Technical Analysis - Fibonacci Trading	MasterTrader	Technical Analysis	18	21st March 2008 12:13 PM
BSE Sensex to touch 280,000 in year 2050	TATrader	General Chit Chat	16	28th December 2007 05:49 PM
BSE to launch Weekly Options	amc	Options	6	21st August 2005 12:07 PM
BSE unveils mid-cap, small-cap indices	Mohan	Equities	1	15th April 2005 12:33 PM
Performance of BSE Sectoral Indices since the May 17th Crash	Traderji	Equities	2	19th October 2004 04:05 PM