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Elliott Wave Foundation Golden Ratio and Fibonacci Series

I. Fibonacci Series is the structural basis of forex discount brokers theory Elliott, the founding father of wave theory, publicly published the wave theory in 1934, pointing out that the stock market trend according to a certain pattern of development, between the rise forexbonusrebate fall, a variety of waves rhythmically repeated, Elliott created the wave theory, belongs to a set of fine analysis tools, including the following Elliotts second book published in 1946, simply named "Natures Law" (NaturesLaw) wave theory, the second important subject, the ratio between waves, and the ratio actually follows the development of the cashback forex forexrebatesbrokers series Elliott in "Natures Law In his book "The Laws of Nature", Elliott said that the numerical basis of his wave theory is a series of numbers, which was discovered by Fibonacci in the 13th century, therefore, this series is generally known as the Fibonacci series. In fact, as early as in the Chinese "Tao Te Ching" Chapter 43, the true meaning of the magic number series: Tao gives birth to one, one gives birth to two, two gives birth to three, three gives birth to everything The magic number series includes the following numbers: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 61 forexdiscountbrokers, 987, 1597…… up to infinity constitute the basis of the Fibonacci magic number series It is very simple, starting from 1, 2, 3, resulting in an infinite series of numbers, and 3, in fact, the sum of 1 and 2, after the emergence of a series of numbers, all in accordance with the above simple principle, two successive appearances of adjacent numbers added together, equal to a later number for example, 3 plus 5 equals 8, 5 plus 8 equals 13, 8 plus 13 equals 21, …… … until the infinite surface It seems that this series of numbers is very simple, but behind it lies an infinite number of mysteries This series is called the Fibonacci series This series has the following properties: (1) the sum of two numbers in any sequence is equal to the latter number, for example: 1 + 1 = 2; 2 + 3 = 5; 5 + 8 = 13; 144 + 233 = 377; …… (2) in addition to the first three (2) Except for the first three numbers (1, 2, 3), the ratio of any number to the next number is close to 0.618, and the further it goes, the closer its ratio is to 0.618: 3&pide;5 = 0.6; 8&pide;13 = 0.618; 21&pide;34 = 0.618; …… (3) Except for the first three numbers, the ratio of any number to the previous The ratio of any number to the previous number, close to 1.618 interestingly, the reciprocal of 1.618 is 0.618 for example: 13&pide;8 = 1.625; 21&pide;13 = 1.615; 34&pide;21 = 1.619; …… II, the secret of the square Russian famous mathematician Verosliev, once published the magic Number research paper report, suggesting that many of the mysteries of the Fibonacci magic number, one of them is the secret of the magic number square 1, starting from 1, may be randomly selected adjacent to two consecutive magic numbers, the number can not be limited, the first of these magic numbers squared, and then the square of the resulting number to add, the sum must be equal to the last magic number and then the next magic number multiply 2, in addition to the above-mentioned two consecutive magical number of the square of the magical relationship, but also two magical number of the square of the magical relationship between the two magical number of the square of the magical number of the square of the two separated minus the square of the magical number of the lower, the difference between the two square numbers must belong to another magical number Example: 55-22 = 2188-33 = 551313-55=144……By the above analysis, the reader can easily understand that the square in the quantitative analysis of wave theory also occupies a certain position For example, the worlds unique and amazing stock Yuyuan Mall from its 100 yuan coupon soared to 10,000 yuan above, it happens to be near the square value of its starting price Whether we can boldly say that the Shanghai market starting point is near 100, then the future awaits its target of 10,000 points? Three, the magic number ratio wave than the ratio between the waves, often appearing figures, including 0.236, 0.382, 0.618 and 1.618, etc., these figures in the 0.382 and 0.618 we also call the golden ratio In fact, the source of the above ratio, also from the magic number series 1, in the Fibonanci magic number series, any two adjacent magic The higher the numerical value, the closer the ratio will be to 0.6182. In Fibonaccis magic number series, if you take any two adjacent magic numbers and, in contrast to the above, compare the higher magic number to the lower magic number, the result of the calculation will gradually approach 1.618. Similarly, the higher the number of digits obtained, the closer the ratio will be to 1.618. 3, if you take the two magic numbers next to each other, then by exchanging the high and low digits, you can get close to 038.2 and 2.618 respectively. 4, the 0.382 and 0.618 two important magic number ratio multiplied by another important magic number ratio: 0.3820. 618 = 0.236 The above-mentioned important ratios evolved from the magic numbers: 0.236, 0.382, 2.618 and 0.5 (of which 0.236 and 0.618 is the famous golden ratio) are important tools in wave theory to predict future highs or lows. In the context of wave theory, a long market (bullish) phase can be represented by an up wave, which can be divided into five smaller waves, or further divided into twenty-one sub-waves or even further subdivided into up to eighty-nine sub-waves, while a short market (bearish) phase can be represented by a large down wave, which can also be divided into Three secondary waves or can be further divided into thirteen waves of a lower level or even finally fifty-five waves In summary, we can understandably conclude that a complete cycle of rise and fall can be divided into two, eight, thirty-four or one hundred and forty-four waves. 55, 89 and 144, all belong to the magic number series of the ratio between the waves, but also often affected by the Fibonacci magic number combination ratio, the following we introduce the magic ratio and measure the specific use of the proportion between the waves and the proportion of the relationship: 1, for the push wave, if the push wave in a sub-wave to become an extension of the wave, the other two push waves regardless of the amplitude of its operation or That is to say, when the third wave in the push wave in the trend to become an extended wave, then the other two push waves, the first wave and the fifth wave of the rise and run time will tend to be roughly the same if not exactly equal, it is very likely to 0.618 relationship with each other. 2, the final goal of the fifth wave, according to the first wave bottom to the second wave top distance to be estimated. 3, for A-B-C three wave adjustment wave, C wave of the final target value may be based on the magnitude of the A wave to estimate the length of the C wave, in the actual trend, will often be 1.618 times the A wave of course, we can also use the following formula to predict the C wave down target: the bottom of the A wave minus the A wave times 0.618; (4) For the symmetrical triangle of the finishing pattern of the wave trend to see, within the symmetrical triangle, the rise and fall of each wave and the ratio of other waves, usually to 0.618 magical ratio of each other to maintain so, the wave theory and magical numbers, the relationship between intimate In order to enable the reader to better use the magic number of quantitative analysis of waves, the following list and the magic number ratio and its derivation of the characteristics of the number ratio: (a) 0.382: the common retraction ratio of the fourth wave and the percentage of retraction of part of the second wave, the retraction process of wave B (ABC wave to zigzag operation); (ii) 0.618: most of the second wave of the adjustment depth for ABC wave to zigzag when the adjustment ratio of wave B fifth wave of the expected target and 0.618 related to the sound ratio of the wave within the triangle by 0.618 to maintain; (iii) ) 0.5: 0.5 is the middle number between 0.382 and 0.618, as the magical number ratio of the supplement for the ABC of the word adjustment wave, the adjustment range of wave B will often be maintained by 0.5 (d) 0.236: is derived from 0.382 and 0.618 two magical number ratio multiplied ratio value is sometimes used as the third or fourth wave of the retraction ratio, but generally less common (v) 1.236 and 1.382: for the ABC irregular adjustment pattern, we can use the relationship between wave B and wave A, with the help of the two magic ratio figures of 1.236 and 1.382 to predict the possible target value of wave B; (vi) 1.618: since the third wave is the longest wave in most of the three driving waves, and Most C waves are very destructive, so we can use 1.618 to maintain the proportional relationship between the first and third waves and the proportional relationship between C and A waves; for the Fibonacci magic series of numbers, the reader has learned that in wave theory, especially in the quantitative analysis of wave theory, plays an extremely important role in which 0.382 and 0.618 are the two magic numbers commonly used ratio of its use When using the above magic number ratios, investors and analysts can better predict the signal of the top and bottom of the stock price if they cooperate with the wave pattern and with the assistance of the power system indicators. According to the above principle, investors can use it to set stop-loss points during specific operations
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