Mr. Fibonacci died hundreds of years before
the stock market came into existence,
so his number systems were applied to the market by
modern day chartists looking for ways to make sense
of market moves and seeking patterns.
His number systems, in and of themselves, are not magical.
If Fibonacci, or anyone else, had not seen this particular
number combination, but rather a completely
different combination (named after it's creator - Ralph)
we'd be using the Ralph system right now.
It's my understanding that since we all we use
this system, it becomes self fulfilling, much like moving averages and
other indicators which are entered into computers
for program buying and selling.
So, as we approach critical Fibonacci numbers or waves
or MA levels of S/R, we should expect to see the
big boys attempting to anticipate each others reactions
and be the first in or out ahead of the crowd...
isn't that why we watch this stuff?...
or am I missing something?
Yep, it must be time for bed. |
