and what about ichimoku clouds?
Best Fibonacci trading book Ever Written
- Thread starter chaos_trader
- Start date
Quote from chaos_trader:
The empirical result we obtained does appear to corroborate the claim of technical analysts that there is some predictive utility associated with Fibonacci sequences used as filters in automated trading systems.
Good Luck with that. Very poor experiment:
selectively mine exactly one 4 yr sample window containing set of 7 pts that contain some sub pts that are near fibonacci;
take a completely different measurement
and find some correlation to corroborate predictive utility.
They weren't kidding when they said their goal was to identify visual patterns. Looks like they kind of found one visual pattern to corroborate their theory.
Don't forget that butter production in Bangladesh has highest predictive correlation to S&P movements!
and for the Ichimoku Kinko Hyo charting system?
Quote from chaos_trader:
and for the Ichimoku Kinko Hyo charting system?
Well... it does use clouds, and there are plenty of good patterns to be found there.
However, I prefer the rorschach technical indicator, as it is constantly evolving and reflects directly upon your own trading personality.
When an inquisitor arrived in an area he called for reports of anyone suspected of heresy, sometimes offering rewards to spies who would report suspected heretics. Those suspected were imprisoned to await trials. The trials were held in secret and the inquisitor acted as judge, prosecutor, and jury. The accused had no lawyer. It was often simpler to confess to heresy than to defend oneself, especially since torture was often employed until the accused was ready to confess.
"Our conclusion must be that there is no significant difference between the frequencies with which price and time ratios occur in cycles in the Dow Jones Industrial Average, and frequencies which we would expect to occur at random in such a time series...The evidence from this paper suggests that the idea that round fractions and Fibonacci ratios occur in the Dow can be dismissed."
it's a poor workman that blames his tools
fibo levels, ew, ta, charting are only useful to right brainers - visualists
while i fu on calling a higher high of $180 for crude, crude's the perfect fibo # example:
'Crude to $89': http://www.elitetrader.com/vb/showthread.php?s=&threadid=51120
'Crude Oil to $144': http://www.elitetrader.com/vb/showthread.php?s=&threadid=107289
'crude to $55 . . . how about $34 ?': http://www.elitetrader.com/vb/showthread.php?s=&threadid=141755
see first chart for ew scenario
and finally a DJIA fibo chart from 'Fall 09-2': http://www.elitetrader.com/vb/showthread.php?s=&threadid=165585
the attached chart illustrates 3 of the 4 important components when using fibos -
the HH, LL and Close, that depending from which points the fibo is drawn, that
particular fibo level is hit, or hits, as well as choosing the correct points to draw
the fibo from - 1974 fibo doesn't work; the 4th component is the timeframe of the
chart since that particular fibo level hit may only be seen on that particular timeframe
whatever it is, and for me it's the Close that's usually the confirmation
it's a poor workman that blames his tools
fibo levels, ew, ta, charting are only useful to right brainers - visualists
while i fu on calling a higher high of $180 for crude, crude's the perfect fibo # example:
'Crude to $89': http://www.elitetrader.com/vb/showthread.php?s=&threadid=51120
'Crude Oil to $144': http://www.elitetrader.com/vb/showthread.php?s=&threadid=107289
'crude to $55 . . . how about $34 ?': http://www.elitetrader.com/vb/showthread.php?s=&threadid=141755
see first chart for ew scenario
and finally a DJIA fibo chart from 'Fall 09-2': http://www.elitetrader.com/vb/showthread.php?s=&threadid=165585
the attached chart illustrates 3 of the 4 important components when using fibos -
the HH, LL and Close, that depending from which points the fibo is drawn, that
particular fibo level is hit, or hits, as well as choosing the correct points to draw
the fibo from - 1974 fibo doesn't work; the 4th component is the timeframe of the
chart since that particular fibo level hit may only be seen on that particular timeframe
whatever it is, and for me it's the Close that's usually the confirmation
it's a poor workman that blames his tools
and candlesticks is just illusion too
http://www.sciencedirect.com/scienc...serid=10&md5=42db0c8ce6c3382d49b464c044f0162c
Is technical analysis self-fulfilling?
http://www.sciencedirect.com/scienc...serid=10&md5=42db0c8ce6c3382d49b464c044f0162c
Is technical analysis self-fulfilling?
Then maybe he shouldn't use a spatula to hammer nails.
Of course it is... that's why it works (when it does).