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Article: Fibonacci in the stock market: Fibonacci analysis can enhance your Elliott wave performance. Here's an example of how to apply Fibonacci ratios to forecasting. (Trading: Techniques).
- Article from:
- Futures (Cedar Falls, IA)
- Article date:
- June 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A completed Elliott wave usually displays Fibonacci price and time relationships among its components. I have long maintained that Wave V in the stock market, which began at the lows of 1974 or 1982, would end when it reached a Fibonacci relationship to the preceding wave structure dating from the Depression lows of 1932.
The Dow Jones Industrial Average (DJIA), enjoying the greatest stock mania of all time, surged past several of these relationships along the way. At its final high, though, it reached one of the projected targets and satisfied two standard Fibonacci relationships simultaneously.
TWO RELIABLE RELATIONSHIPS
That the advance from ...