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Years ago I purchased a small book (100pp) that very adequately explains
Fibonacci. "Fascinating Fibonaccis, Mystery and Magic in Numbers" by Trudi
Hammel Garland. ISBN 0-86651-343-4.
The book covers Fibonacci origins and definitions, Fib numbers in nature,
art, music, science, and the mathematics of Fib numbers. Interesting book.
Al Taglavore
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> From: Neal Hughes <neal@xxxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: Theory behind Fibonacci?
> Date: Saturday, September 05, 1998 9:53 AM
>
> 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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