spooky time zones

[hi5]

I learned about Fibonacci time zones today. For those not familiar with this concept, Fibonacci was a mathematician (born 1170) who discovered the numerical series 1,2,3,5,8,13,21,34,55 etc, where each number is added to the previous to generate the next. If you put verticals lines at each significant number of days after a peak or trough then it is supposed to predict reversals. So, I thought I would try the FTSE100, starting with the peak on 1/9/00 - a high of 6838. The subsequent low of 5279 occurred on 22/3/01 - 54 days later - just one day out from old Fibonacci's 55th day. Spooky or what????

 

[darth trader]

FIbonacci numbers appear in nature all over the place and have some very surprising applications. If you are mathematically or scientifically inclined then I can recommend a more details look.

Within TA you can take the concept further and consider Elliot Wave Analysis.

The important thing to remember is that these things do not tell you/predict the direction of the future but can be used to watch for significant turning points and hence assist in decision making.

Of course some people go even further and consider the effect of the heavens upon the market...