Table of Contents
Table of Figures
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Library of Congress Cataloging-in-Publication Data
Brown, Constance M.
Fibonacci analysis/Constance Brown.
p. cm.(Bloomberg market essentials)
Includes bibliographical references and index.
Summary: Fibonacci Analysis gives traders a first step toward applying Fibonacci analysis in the market. The book covers key elements of this technical analysis tool. Traders will get up to speed quickly on its unique benefits. The major ratios between numbers in the Fibonacci sequence describe predictable market patterns. Fibonacci analysis analyzes these movements to identify future market pricesProvided by publisher.
ISBN 978-1-57660-261-4 (alk. paper)
1. Investment analysis. 2. Speculation. 3. Fibonacci numbers. I. Title.
HG4529.B762 2008
332.632042dc22
2008021539
Geometry has two great treasures: one is the theorem of Pythagoras; the other, the division of a line into extreme and mean ratio. The first we may compare to a measure of gold; the second we may name a precious jewel.
Johannes Kepler (1571-1630)
Acknowledgments
FIBONACCI ANALYSIS IS a personal passion of mine, and I would like to thank the entire team at Bloomberg Pressincluding David George, JoAnne Kanaval, Dru-Ann Chuchran, and Leah Shrirofor raising the quality bar to the highest standard possible. My special thanks go to Stephen Isaacs. With each book weve done together, my trust in him grows.
Another important part of the team behind this book was Market Analyst Software, the Australian software vendor that has developed features and tools to push this subject past industry conventions. I would particularly like to thank Jonathan Garrett and Matthew Humphreys, who have struggled through many versions of the software development process to support my many requests. None of this would be possible without the support of the companys founder, Mathew Verdouw, who is committed to creating a revolution in technical analysis.
Last, but not least, is the personal support I was given behind the scenes from enthused colleagues and friends. That must also include the little Trade Street Gallery Coffeehouse in Tryon, NC, which attracts phenomenally accomplished Ivy League professors, physicists, business executives, and artisans and musicians who make an impact in such diverse fields as the Broadway theater and specialized fabrics protecting the worlds firefighters. The Trade Street Gallery Coffeehouse is a mecca of talents, and the positive energy and enthusiasm is indeed infectious.
A lot of people have cared about and devoted their best efforts to this work. I hope this book will stand up to the test of time and become worn and dog-eared from years of use.
Introduction
TRADERS HAVE BEEN asking me for more than ten years to write this book. Being a fund manager, there was no chance I would write a comprehensive book on the price-projection methods I used or the research that was developing from the methodology. But times change and a wise partner of mine asked, What is your business exit strategy going to be? He explained that all the knowledge and wisdom you have gained over the years will be lost if you have no plan to pass it on to the next generation. It is not enough to come, extract from the markets, and then hide in a cave with the best gems you have polished over the years tucked safely away in the deepest partitions of your mind. What good was the journey if someone does not pick up the flag and continue to move it forward?
I never felt ready to put into print the most important work that the markets had trained me to use as the cornerstone of my various geometric methods. There was always more I needed to prepare before unveiling this work to my peers. It is alarming how time seems to fly by and indeed odd how someone becomes branded a specialist. One day, I was just working hard to catch the leaders in my craft, and then one morning, I awoke to find that the person looking back at me in the mirror was the one being hounded by others to reveal a deep hidden secret she held. There were no secrets except what was earned through hard work and a relentless passion to gain a better understanding of why something worked with each new market experience.
