Fibonacci Sequence & the stock market

[Eldorado]

"On Friday, as the U.S. stock market closed out its worst week since 2008 amid coronavirus-related turmoil (before recovering somewhat early this week), investors were left with a glaring question: Is it all downhill from here?

"Amid such economic turbulence, some market researchers look to a familiar, powerful set of numbers to predict the future.

"“Fibonacci retracement” is a tool that technical analysts use to guide their outlook about buying and selling behavior in markets.

"This technique is named after and derived from the famous Fibonacci sequence, a set of numbers with properties related to many natural phenomena.

"While using these numbers to predict market movements is a lot less certain than using it to calculate sunflower seed patterns, the appearance of the sequence in the field of finance is yet another testament to its power in capturing the human imagination."

Full article at the Smithsonian mag: Link

Fibonacci number: Wikipedia

[SHaYap]

Follow the "sum"

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[Piney]

31 minutes ago, third_eye said:

Follow the "sum"

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The Yellow Brick Road of the Golden Spiral. 

[acute]

It's amazing how much the Fibonacci Sequence is seen in nature.

 

Edited March 25, 2020 by acute

[spartan max2]

To everyone shutting everything down, I hope causing another great depression was worth it...

You can't just flip a switch for the economy to come back on. People are losing jobs everyday. This is cause problems. 

[+and-then]

54 minutes ago, spartan max2 said:

To everyone shutting everything down, I hope causing another great depression was worth it...

You can't just flip a switch for the economy to come back on. People are losing jobs everyday. This is cause problems. 

Trump has mentioned trying to get things going again.  He said we shouldn't make the "cure worse than the disease" or some such.  Watch his enemies use that to blame every single death on him.

[Golden Duck]

16 hours ago, Piney said:

The Yellow Brick Road of the Golden Spiral. 

I'm pretty sure I introduced everybody to the Golden Duck Ratio a while back.

[SHaYap]

17 minutes ago, Golden Duck said:

I'm pretty sure I introduced everybody to the Golden Duck Ratio a while back.

Not quite as quacker as the quackery quacking around this thread, thank the Fibonacci spiraling spiral...

I'm sure the sunflowers won't care for a want... 

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[Ozymandias]

The Fibonnaci sequence has only been demonstrated to underpin many natural physical processes, not phenomenon as ephemeral as investor sentiment. Fluctuations in financial markets is driven by consumer confidence and the myriad personal motivations of investors to buy, sell or invest at any point in time. To suggest that this non-physical dynamic is allied to the Fibonnaci sequence or that there is some physical force causing these fluctuations to converge on the Golden Ratio is rubbish. 

This kind of quackery can only impress the ignorant and gullible, preferably those with more wealth than sense invested in those stocks and shares, because that, of course, is the idea. These 'technical analysts' are trying to influence the herd psychology. If enough wealthy lemmings can be stampeded by this crap into a certain behaviour that suits those who promoted the idea in the first place and are going to profit from it in some way.