BSE & Fibonacci

#2
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
 
#3
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.;)
 
#4
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?
 
#5
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?
 
#7
binzy said:
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
 
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#8
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
 
#9
im3vil said:
He was a Math guy.. not a trader :cool:

u can read more bout him here.

http://www-groups.dcs.st-and.ac.uk/~history/Mathematicians/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 :rolleyes:

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 ! ;)
 

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#10
Here I am again... dont hate me

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
 

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