pimpit
27-10-2006, 06:41 PM
You guys are pretty pathetic with new investment strategies.
No one comes up with anything new so I have come with Fibonacci theory.
This is better than MD’s theory (that he does not tell us) and Yogis Astro theory (which he does not give us a worked example).
This method does not need any research on the business you buy in Share Market. Also this does not need any Warren Buffet style evaluation of the business. (ie: no long nights trying to code Warren Buffet formulae in to xl)
In summary
Leonardo Fibonacci da Pisa was born around 1170 the son of a city official and merchant. He became a prominent mathematician and is credited with the discovery of what we now call the Fibonacci series.
After a trip to Egypt he published his now famous Liber Abacci (Book of Calculation) in which amongst other things he comes up with the sequence of numbers.
1,1,2,3,5,8,13,34,55,89>>On to infinity.
If you add one of the numbers in the sequence to the number before it you get the next number in the sequence e.g. 3+5=8 and so on.
After the first few numbers in the sequence if you measure the ratio of any number to that of the next higher number you get .618 to 1 e.g. 34 divided by 55 equals 0.618. The further along the sequence you go the closer to phi you will get.
If you measure the ratio between alternative number you get .382 e.g. 34 divided by 89 = 0.382 and that's about as far into the explanation as I care to go. All you need to know is if your charting software has Fibonacci capabilities. If it does then that will work everything out for you.
The three Fibonacci ratios we shall use are .382, .500 and .618 and how we can use them in our day to day trading.
In an uptrend measure the distance between point A and point B and in a downtrend measure the distance between point A and point B where point A will always be the lowest recent.
You can read up more on this theory online. Use google.com to search for "Fibonacci theory". You may find lot of hits related to someone trying sell you Fibonacci book or dvd, ignore those.
I will post a worked example of this Fibonacci theory on my favorite stock NZO sometime next week. I came across this theory at a free ASX seminar in Brisbane so I thought I would share.
No one comes up with anything new so I have come with Fibonacci theory.
This is better than MD’s theory (that he does not tell us) and Yogis Astro theory (which he does not give us a worked example).
This method does not need any research on the business you buy in Share Market. Also this does not need any Warren Buffet style evaluation of the business. (ie: no long nights trying to code Warren Buffet formulae in to xl)
In summary
Leonardo Fibonacci da Pisa was born around 1170 the son of a city official and merchant. He became a prominent mathematician and is credited with the discovery of what we now call the Fibonacci series.
After a trip to Egypt he published his now famous Liber Abacci (Book of Calculation) in which amongst other things he comes up with the sequence of numbers.
1,1,2,3,5,8,13,34,55,89>>On to infinity.
If you add one of the numbers in the sequence to the number before it you get the next number in the sequence e.g. 3+5=8 and so on.
After the first few numbers in the sequence if you measure the ratio of any number to that of the next higher number you get .618 to 1 e.g. 34 divided by 55 equals 0.618. The further along the sequence you go the closer to phi you will get.
If you measure the ratio between alternative number you get .382 e.g. 34 divided by 89 = 0.382 and that's about as far into the explanation as I care to go. All you need to know is if your charting software has Fibonacci capabilities. If it does then that will work everything out for you.
The three Fibonacci ratios we shall use are .382, .500 and .618 and how we can use them in our day to day trading.
In an uptrend measure the distance between point A and point B and in a downtrend measure the distance between point A and point B where point A will always be the lowest recent.
You can read up more on this theory online. Use google.com to search for "Fibonacci theory". You may find lot of hits related to someone trying sell you Fibonacci book or dvd, ignore those.
I will post a worked example of this Fibonacci theory on my favorite stock NZO sometime next week. I came across this theory at a free ASX seminar in Brisbane so I thought I would share.