11:11
Originally posted by starwolf@Aug 13 2004, 01:10 AM
absolutely rob. even as a child i saw the similarity of an atom to a solar system, or a snail shell to a hurricane. like there was an order to the universe. what was the sequence? cant remember.
If you're asking about a Fibonacci sequence it starts with 1. You take the current number and add the previous number to it to get the next number. The start of the sequence has 1 repeat itself because the initial "1" has no number or a zero is assumed to be the previous number. So the Fib. sequence is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.
Fibonacci relationships show up all over financial markets, and Fib. is used in market analysis, projected tops, bottoms, determination of bifurcation points, etc. There are a number of technical analysis software programs that have heavy Fibonacci applications. Fibonacci also produces "fractal" patterns in nature (snail shells, hurricanes, galaxies, the human body is full of fractals, trees, shorelines, etc.) as well as financial markets.
Elliot Wave Principal is a good place to learn more about all of this. Ralph Nelson Elliot came up with the wave principal while studying stock market patterns back in the 1930's. He found that markets follow patterns, and the patterns had Fibonacci relationships, and the patterns were fractal in nature.
He also discovered that the patterns in financial markets are reflected in social mood, culture and economic cycles. What's amazing in Elliot's discovery is that changes in social mood, and cultural changes can be predicted by patterns revealed in the stock market. The stock market is a leading indicator of the prevailing social mood and the economy. Based on the topping patterns in the major indices since the first quarter of this year, it appears that the social mood and the economy are heading for a severe downturn over the coming months and years (until sometime in 2006).
There's a free tutorial on the Elliot Wave Principal, Fibonacci and fractal patterns available at the Elliot Wave International website.
http://www.elliotwave.com There are a couple of great books that tie all of this together, especially the cultural effects and social mood shifts that go along with the whole process. Check at books written by Robert Prechter, Jr. Fascinating stuff. It's not just about "stock market" analysis. In fact, Prechter tends to focus more on social mood than anything else.
Hope this wasn't too boring (if you're still reading) or too off topic.
Cary
