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Description of Fibonacci Ratios with Pattern Recognition

Over the past 20 years the use and misuse of the Fibonacci Summation Series proliferated to the point that commentators on the nation's TV business channels now present themselves as resident experts. I lay no claim to being an expert. However, my studies always included an extensive examination of Fibonacci numbers. My pragmatic position on anything I learned is that if I could not use what I was studying to help in trading, then I was not interested in pursuing it any further. If this material stimulates your interest in the subject, then introducing you to it will be worthwhile. A word of caution, this material is based on the probabilities of trading. The art of trading is one of risk management. Amos Hostetter, one of the founders of Commodity Corporation of Princeton, New Jersey, used to say 'take care of losses and the profits will take care of themselves'. I refer to this quote a lot because it is very important!

The pattern recognition methodology illustrated i this text will be of interest to anyone who ever traded using technical charts. I can say with confidence there are very few who have researched patterns to the extent that I have. Some of the references date back to the early 1900's. Each of the patterns is based on ratio and proportion. A technical chart is nothing more than a road map with a price and time axis. These patterns repeat with a great deal of regularity. My best students have been airline pilots. They seem to approach trading like they approach flying, following a flight plan. The similarities to trading are numerous.

Finally, one of my goals in writing this book is to expose you to the subject of ancient geometry. Fibonacci numbers are an integral part of the numbers that make up the subject of ancient geometry. It will be of interest to some of you that many of these sacred ratios trace their origin to the cosmos. I will not spend a significant amount of time relating my experiences in astro-harmonics research. The subject is too vast for me to consider. More importantly, it is not necessary for profitable trading.

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Title Information

ISBN:

9780934380362

Pages:

184 pages

Format:

Paperback

Product Code:

5965

Publisher:

Traders Press

Published:

01/01/1970

Edition:

1st Edition

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Contents of Fibonacci Ratios with Pattern Recognition

1. Preface

2. Introduction

3. Clues from the Cosmos

4. Harmonic and Vibratory Numbers

5. Geometric Characteristics of a Price Chart

6. The Primary Patterns

7. Classical Chart Patterns Using Ratios and Proportion

8. The Butterfly Pattern

9. The Opening Price

10. Entry Techniques

11. Appendices

12. Additional Readings