Flack - Fibonacci, ROFL, completely agree.
"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?"
Yes, Yes, Yes (IMHO), traders play the Fibs.
Hence, I watch the Fibs.
Although most Fibs are not Fibs.
The ratio of 1.6180... property of the Fibs numbers is the ratio to wich two consecutive numbers in the serie trend the higher those numbers are.
That 1.618 ratio, also called the Golden number, for other reasons, is an application of gardener's rope geometry.
0.618 happens to be 1.618 inverted (1/1.618) and also 1.618 less 1. That ratio has many properties and was very usefull in the ancient times as precise figures could be measured with only a rope. Does this applies to the stock market ?
Gann uses the 1/8ths, 3/8 and 5/8 a relatively close to "Fib" ratios. Other statisticians use the 1/3rds.
Most frequent retracement of 1/2 has no paternity.
So, if we set a series of ratios from all these theories on the retracements, we end up with:
.125, .23, .25, .333, .375, .382, .5, .618, .625, .666, .75, .78, .875
Obviously, one of the theories will be right. LOL |
