Fib numbers ? Pure Coincidence - lets see
By davidc November 21, 2008
Recently i have been chatting to a few traders many of whom dismiss fib numbers as
” something on the chart that doesn’t move allowing you feel better ” . Humm… I don’t know enough about Fibonacci numbers and the wiki article doesn’t really shed any light on the subject but I was playing around with fib lines today and noticed
that if you drew a fib extension from today’s first low to the first high on the SP500 the extension marked pretty much our precise low on the e minis.
This isn’t ” dude ” i found the holy grail but i do find it interesting and have resolved to find out more. If as some have suggested the institutions black box trade ,, how are these boxes programmed ? Or if human emotion can be stretched to certain limits .. On one side it sounds kind of out there but look at the chart. Sorry for the woeful 70s chart colours something wrong with my software.
Experiment.
Ew Theory suggests we see fractals of a bigger picture in smaller time scales, I have been watching the e mini futures tonight. I don’t know about the amount of participants in the market and the disposition but as a totally wacky experiment lets see if there’s anything in the fib number extension from the ranges they created in their trade as an insight into tomorrow. Is there something about .618 ?
Check one interesting fact, the upper 1.618 extension from their high gives us 776 … the number we didn’t need to break. Coincidence, perhaps. Lets see if we go high and bounce at 776 or low and bounce at 742 or 732. As you can see their is no exact terms of this experiment , my aim is to see if this somehow represents something , a fractal of human emotion and if human emotion can be linked to fib numbers.
Could all be nothing but ill be back tomorrow to report on the results.
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