|
PureBytes Links
Trading Reference Links
|
Interesting stuff... But how does one apply this to trading?
I do enjoy reading about all aspects of Fibonacci. If you can
ignore the religious fervor, you might enjoy this website:-
http://www.evolutionoftruth.com/div/fibomyst.htm
But when it comes to trading, the Fibonacci habits of
rabbits are not of much use.. There are good Fibonacci
techniques, which provide a reliable trading tool, but don't
get lost in the poetry of Fibonacci..
-Neal.
At 12:21 PM 9/26/2001 -0400, -- wrote:
>----- Original Message -----
>From: "walt" <wa1ter@xxxxxxxxxxx>
>Newsgroups: misc.invest.futures
>Sent: Tuesday, September 25, 2001 9:13 AM
>Subject: Re: More On Fibonacci
>
>
>: zendial@xxxxxxxxx (Art Zapper) writes:
>:
>: > Cycle and astro types often talk about the Fibonacci ratio. It is
>: > based on the so-called Fibonacci number series, which is formed by
>: > starting with 0 and 1 and then adding each number to the previous one
>: > to get the next number in the series. Here it is:
>: >
>: > 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc
>: >
>: > One interesting thing about this series is that (after about the 10th
>: > number), if you divide any number by the following number, the ratio
>: > remains roughly constant at about 0.618. For example 34/55=0.6181818
>: > and 89/144=0.618055. ...
>:
>: Another interesting property that I've never seen in print is that
>: the series can also be extended backwards by working to the left,
>: subtracting the numbers instead of adding them:
>:
>:
>: ... -21, 13, -8, 5, -3, 2, -1, 1, 0, 1, 1, 2, 3, 5, 8, 13, 21, ...etc.
>:
>: This produces what engineers call an oscillator, i.e. the numbers
>: swing above and below zero instead of just getting bigger or smaller.
>:
>: This property demonstrates the relationship between the Fib series
>: and the mathematical 'exponential' function which is typical of so
>: many natural phenomena like population growth--i.e. the rate of
>: growth of a population is proportional to the total size of the
>: population--a country of a billion people produces about 1000 times
>: more babies each year than a city of one million would produce.
>:
>: But populations don't swing from positive to negative like the numbers
>: to the left of zero, so what is that all about? This leads to the dark
>: side of mathematics known as 'complex number theory' where the magic
>: "imaginary" number 'i' rears its ugly head.
>:
>: 'i' is defined as the square root of -1, i.e. i x i = -1. You can
>: only imagine what number that might be, so 'complex number' theory
>: was often called 'imaginary number' theory by its many critics.
>:
>: It proved to be very useful over time, though, allowing the accurate
>: mathematical modeling of natural systems that oscillate--like a
>: weight hanging on the end of a rubber band that will bob up and
>: down when you pull and release it. Or the pendulum on a clock,
>: or the electronic oscillator that drives your digital watch.
>: Or....maybe a market that swings up and down...
|