Jump to content

Fibonacci in the markets - PRICE into TIME!

Recommended Posts

We all know that the universe, planets, Earth and Human beings work to the laws of natural growth and display Fibonacci ratios

(If you stood inside a circle, outstretched limbs you'd create a pentagram shape, the pentagram is riddled with Fibonacci ratios and golden triangles)

Even the "dance" that ensues between the interaction cycles of the Earth Vs Venus create a lovely pentagram, once enough rotations have passed!!

So Fibonacci in the markets? - Of course it is!

Depends how you use it - 1 method I use to time the markets, YES time them, is to apply a little known mathematical multiplication using a Fibonacci ratio (not shown or revealed), this method can time the big turns in the market highly accurately

Elliott Wave International first introduced me to the concept of Fibonacci levels, ratios etc, but it'**** and miss in general application and I don't use it how they use it.

Look at the chart of the DOW below - again this method is hit and miss - but I just wanted to show you of the beauty of the markets - Markets regardless of what most people tell you, are NOT random, they are uniquely governed by mathematics and a complex inter-relation of growth.

Which when looked back on with hindsight - definite mathematical relations can be calculated and seen - I obviously know that this is virtually useless in the real world when we trade the blank right hand side of a chart!!!!!! (I've done extensive research and testing over the past decade and for me I can't find a way to use Fibonacci on price levels with a high level of certainty and by that i mean 75%+ of the time)

There's definitely traders out there like Joe DiNapoli who use Fib levels to trade with and from and the likes of Elliott Wavers

The thing to think about and remember is that EVERY major swing high or low in the markets will have a Fibonacci mathematical relationship to its previous or past swings - so the growth or decomposition of a market  is moving in a predefined direction to satisfy that growth (knowing the end date is what eludes us traders and investors!

Also as some of you are highly likely to question this post - That's fair enough - to some of you it will seem far-fetched - It did for me when I first came across it - however, repeat the method a few times and it crops up far more often than random permits.

Chart below shows how PRICE can turn into TIME when Fib ratios applied (and vice versa!)


DId I time the market in Feb using the method above? = NO, I used the below method 

Now I didn't use the above method to work this out (see below) - but this is what I produced and posted to another site back in June 2017 (confirmed by the date in the yellow box on the chart) - As you can see in June 2017 the March 2020 period was a potential highly volatile period of time for the markets and the fall down into the Dec 2018 low highlighted a possible reversal - traders would then use methods to identify the low to get in (you would NOT trade these dates blindly as they don't always work!) 


Now back in June 2017, a few things had not happened so I was still using a projection date of Dec 2016 for the cycles - If you move the projection date back 1 month to Nov 4th 2016 then the Dec 2018 LOW and the HIGH of FEB 2020 came in BANG on TIME


  • Thanks 1
  • Thought provoking 1
Link to comment
25 minutes ago, THT said:

(If you stood inside a circle, outstretched limbs you'd create a pentagram shape, the pentagram is riddled with Fibonacci ratios and golden triangles)

Sounds very ancient Egypt / Occultist!

Edited by dmedin
  • Like 1
Link to comment
Guest Nonsense

Of course Thats ALL absolute NONSENSE #Fibonacci has NO Place in Modern Trading

U Can take Numbers and Jiggle them untill u get the Answer U Want

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 07/06/23 19:48
  • Posts

    • Look Ahead to 8/6/23: eurozone, Japan growth; US initial jobless claims; Crest Nicholson, MITIE earnings Growth is in focus as investors await eurozone and Japan GDP data, plus keep an eye out for US initial jobless claims ahead of the Fed monetary policy meeting next week. Crest Nicholson and MITIE post results. Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Wednesday 07 June 2023              
    • With the price of Brent having failed between $77.50 and $78.50 three consecutive times in the past month, we will go short at $76.70 with a downside target at $72.00 and a stop-loss at $78.55 on a daily chart closing basis. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 07 June 2023
    • Charting the Markets: 07 June Indices grind higher. EUR/USD, GBP/USD and USD/CAD struggle to make headway. And WTI and gold trade in low volatility while wheat slips back. Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 07 June 2023                       This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
  • Create New...