Fibonacci and Gann Applications in Financial Markets: Practical Applications of Natural and Synthetic Ratios in Technical Analysis
Fibonacci and Gann Applications in Financial Markets is a critical exploration of Fibonacci numbers, retracements, projections, timeframes and fanlines and their current usage within the financial markets by technical analysts. Although they can be extremely effective analytical tools when used appropriately, mistakes in usage can be extremely costly from a financial and credibility viewpoint.
Traditional paper charting days are gone, as is the gentle skill of taking time to look at trend, pattern and Point and Figure charts and taking a measured long-term view. It is not uncommon for a technical analyst today to consider the long-term view as being until lunchtime. Screen-based charting and price information have allowed this shortening in timescales to develop, but not without some cost. Longterm studies of any financial market are few and far between.
It is only through continued practice and study of new techniques and reviews of old long-learned ones that technical analysts will improve their skills. Technical analysis is not a Dark Art practised by very few acolytes; it offers skills and opportunities to look at markets from both a scientific and an artistic bias, as true technical analysis is a porous membrane between science and art and both skills are needed if the technical view is to be successful.
This book looks at the application of two of the more ‘obscure’ techniques, Fibonacci applications and Gann theory. Both of these techniques have a long and glorious application history, but it is the careful application of these techniques that has been overlooked now that many charting packages conveniently draw the various patterns on a screen. This book looks at the drawbacks of this convenience and points the student of technical analysis in the right direction and hopefully encourages good technical practice.
- Introduction to and History of the Fibonacci Sequence
- Application to Financial Market Analysis
- Other Applications of the Fibonacci Retracements and Extension
- Charting and Difficulties: A Historical Perspective
- Common Errors in Application of Fibonacci Retracements and Extension
- Application and Common Errors in Fibonacci Fanlines
- Application and Common Errors in Fibonacci Timelines
- Total Analysis – Pulling All the Skills and Techniques Together
- Gann, The Misunderstood Analysis
- Other Interesting Studies Using Synthetic Ratios