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I agree, I think they are preordained. They set the basis of E--wave theory.
Fib and Gann allow us to try to predict where most indicators only measure.
A measure is point in time. Fib and Gann extend out to future times.
Richard Estes
-----Original Message-----
From: Neal Hughes <neal@xxxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Saturday, September 05, 1998 10:08 AM
Subject: Re: Theory behind Fibonacci?
>At 01:53 AM 9/5/98 EDT, you wrote:
>>In response to some of the posts on this list, I spent some time fooling
with
>>the Fibonacci retracement tool built into Metastock. I dismissed it in
the
>>past without looking at it, but, it appears there may be something to it.
>>Does anyone know the theory behind Fibonacci numbers as they relate to
>>securities? Do they work just because the technical analysts think they
are
>>going to work and act accordingly or is there more to it than that?
>>
>>Then again, maybe it doesn't matter why they work as long as they work.
>>
>>Thanks,
>>
>>Dan
>>Pocatello, ID USA
>>
>
>Dan, no-one really knows why Fibs work. If we knew, everyone would use
them,
>so they would no longer give me an edge in the markets, so I'm not looking
>forward to the day when we figure it out. Since we don't really know, it
>takes a leap of faith, which stops most people from using them, just the
way
>I like it.
>
>I studied some old charts printed in the old classic book "Technical
>analysis of
>stock trends" by Edwards and Magee. Those charts date back to before Fibs
were
>popular, before computers and charting software. Fibs worked great in those
>times!
>That's before they could have "worked because they are self-fulfilling"..
>
>There are more advanced Fib techniques than the simple retracement tools in
>charting packages, which give me a further edge. Follow the link at the
bottom
>of this message to explore those techniques.
>
>I once wrote a page or two on why I think fibs work, read it here:
>http://www.halcyon.com/neal/fib.html
>
>Best wishes,
>-Neal.
>
>
>---
>DiNapoli Fibonacci techniques -
>http://www.fibtrader.com
>
>
>
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