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I think that this was developed by a market technician in the 50's or 60's.
I forget the name of the person, but he never justified these slopes, and
was criticized by other technicians for this. They are called "speed
resistance lines". They are a built in function in Metastock since at
least V 3.0, look up your current manual. I think that they have lost
favor because we can nowadays easily draw a Fibonacci fan which does have
some mathematical justification.
Lionel Issen
At 03:10 AM 11/22/97 -0600, Harley Meyer wrote:
>Ralph,
>Yes it does. It tells me that Larry Williams is using retracements to
>construct his pivot points/ support & resistance formulas.
>Thank you,
>Harley
>Ralph Volpe wrote:
>
>> Harley Meyer wrote:
>> >
>> > Can anyone tell me something about the following numbers in terms of
>>
>> > retracements: 1/3, 2/3, 4/3, -1/3, -2/3.
>> >
>> Harley,
>> Those fractions approximate fib. retracement numbers, such as .382,
>> .618, 1.382, etc. Also, there is a connection to Gann since he was a
>> numerologist and saw everything related to some fraction of a circle
>> of
>> life, being 360 degrees.
>> Hope this helps a little.
>> --
>> Ralph Volpe
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