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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: FUZFO who wrote (18722)	7/7/1998 1:04:00 AM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

<Someone asked about why the Fibonacci retracement seems to work many times,> Just some casual input here. I think Fibonacci is based on the theory that when institutions buy a stock - let say - at $10, when it reaches $15, most institutions will sell 1/2 of their holdings for a 50% gain. When it rises to $20, they'll sell another 50% and so on to lock in their profit. The same thing happens when the stock drops. Institutions sell 1/2 when the stock drops from $10 to $5 and so on .... thus creating some kind of retracement line. I've lost the detail notes so can't recreate the table. But I think the idea is there. Mang