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Steve
don't know if you know about this - is handy when flying thru charts
during the daily rat-race !
- re Blau s' bk - yes there are other indicators - systems !
e.g. Erogodic_TVI , MDI , MACD etc
ALSO - were you aware of the SMI & TSI _ TRADE ???
fletch
Steve Karnish wrote:
> Neal,
>
> Thanks for sharing your paper. I've noticed that sometimes
> people would rather argue the origins of this number series than
> to simply overlay them on the charts and try to understand the
> "pattern recognition". If a high and a low is posted in a
> security, commodity, or index, you would think people would take
> the time to overlay the retracement lines, fans, and arcs. I
> never look at a chart without doing the following:
>
> 1. Draw the prices in candlesticks
> 2. Draw trend lines, support, and resistance lines
> 3. Apply fib retracements and arcs
> 4. Apply 10+ formulas
>
> Pattern recognition is a real "fuzzy" kind of thing to define.
> After looking at tens of thousands (probably hundreds of
> thousands ) of charts... I would have to say in my humble,
> subjective opinion: Fibs work and they work real good.
>
> Now, I know there's been discussions that allude to the history
> of Fibonacci and whether western Europeans would be allowed to
> teach these theories and so on and so on. I'll try to settle
> some of these arguments by passing along the "family"
> knowledge that was told to me by a direct descendent of old
> Leonardo. My buddy, Dino, from Detroit, related this story
> about his ancestor while watching a Red Wings game and knocking
> back a few "boiler makers" at the LIndell AC:
>
> "My great grandfather, twenty one generations ago (a fib #), was
> from a place called Pisa. Some people think he was born around
> 1170, but the rumors are that his godparents were drunk when he
> got baptized and they could of scribbled anything on the
> baptismal records, so let's just say it was around 1170. Leo
> was a real wild and crazy guy and he had heard that the Egyptian
> women were not as up tight as all those Catholic girls in Italy.
> So, having happy feet, Leo boogied to Egypt to check out the
> chicks. He hooked up with this lady near Gizeh and after they
> had been together for about a month, she suggested that they go
> down to the pyramids at the fall equinox and "do it" in the
> catacombs. Well, the experience changed Leo's whole life.
> Pretty soon you couldn't drag him away from the Great Pyramid.
> He studied the pyramid and discovered that the Egyptians had
> incorporated the "golden ratio" (*Steve's note: I don't even
> want to get into to my stories about my Greek uncle Manuel
> Mandalakis, from Crete) into the geometrical proportions of the
> structure. At night, he continued to study anatomy. The chick
> dumped him for some Basque sheep herder, from the Spain, and he
> eventually boogied back to Italy... heart broken, but with a
> greater appreciation of what "doin' by the numbers meant". End
> of story".
>
> So, how can you argue with Dino's story? Do you want him to put
> a cigar out on your forehead? Some years later, in an Aspen bar
> named Andre's, I was hangin'out with Dino's sister: Marie.
> After five long island teas and a few Frangelica chasers, Marie
> whispered in my ear: "Stevie, I'll tell you this just because I
> think your cute, you're from Detroit, I have a weakness for
> second generation Hungarians and I think I'm in lust. I don't
> tell just anyone! That painter dude da Vinci was named after my
> ancestor Leonardo and his parents taught him those numbers when
> he was growing up and he did all his paintings using those
> numbers (*Steve's note: the first paint by numbers series).
> Let's blow this pop stand and I'll take you home and show you my
> snail shell collection, my dried sunflowers, and the spiral
> galaxies, painted on my bedroom ceiling...it glows in the
> dark!." How could I refuse?
>
> So, there you have it. Knowledge passed down through the ages
> from direct descendants of Leonardo Fibonacci. But hey, why
> take their word for it. I once knew this drummer in a rock band
> who ended up writing some things based on this number series
> (Bob Prechter: The Major Works of RN Elliot). He used to say,
> "Stevie, it's all in the harmony man, dig the harmony. Zappa,
> Monk, Miles, Bird, Hedrix...it's in the harmony".
>
> And although I never met Elliot, I live by his words of wisdom
> (as it pertains to all things in life): "Even though we may not
> understand the cause underlying a particular phenomenon, we can,
> by observation, predict the phenomenon's recurrence."
>
> I'm thinking of unsubscribing this list, based on Groucho's
> wisdom: "I'd never join a club that would have me as a member".
>
> Happy Holidaze,
>
> Steve Karnish
> CCT
> ----------
> > From: Neal Hughes <neal@xxxxxxxxxxxxx>
> > To: metastock@xxxxxxxxxxxxx
> > Subject: Re: Theory behind Fibonacci?
> > Date: Saturday, September 05, 1998 7:53 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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