Larry Pesavento has been trading for 30 years and is primarily a day trader. Fibonacci Ratios With Pattern Recognition describes high probability patterns that coincide with clusters of Fibonacci price projections that provide the short or intermediate term Wader with high probability and low risk Wade setups. Chosen as the Book of the Year by the 1997 SuperTraders Almanac. A well focused and well organized study in the application of Fibonacci relationships.
Introduction:
Over the past 20 years the use and misuse of the Fibonacci Summation Series proliferated to the point that commentators on the nation’s TV business channels now present them-selves as resident experts. I lay no claim to being an expert. However, my studies always included an extensive examination of Fibonacci numbers. My pragmatic position on anything I learned is that it I could not use what I was studying to help in trading, then I was not interested in pursuing it any further. If this material stimulates your interest in the subject, then introducing you to it will be worthwhile. A word of caution, this material is based on the probabilities of trading.
The art of trading is one of risk management. Amos Hosteller, one of the founders of Commodity Corporation in Princeton, New Jersey, used to say, “take care of losses and the profits will take care of themselves.” I refer to this quote a lot because it is very important!
The pattern recognition methodology illustrated in the text will be of interest to anyone who ever traded using technical charts. I can say with confidence there arc very few who researched patterns to the extent I have. Some of the references date back to the early 1900’s. Each of these patterns is based on ratio and proportion. A technical chart is nothing more than a road map with a price and time axis. These patterns repeat with a great deal of regularity. My best students have been airline pilots. They seem to approach trading like they approach flying, following a flight plan. The similarities to trading are numerous.
Finally, one of my goals in writing this book is to expose you to the subject of ancient geometry. Fibonacci numbers are an integral part of the numbers that make up the subject of ancient geometry. It will be of interest to some of you that many of these sacred ratios trace their origin to the cosmos. I will not spend a significant amount of time relating my experiences in astro-harmonics research. The subject is too vast for me to consider. More importantly, it is not necessary for profitable trading.
Contents:
- Clues from the Cosmos
- Harmonic and Vibratory Numbers
- Geometric Characteristics of a Price Chart
- The Primary Patterns
- Classical Chart Patterns Using Ratios and Proportion
- The “Butterfly” Pattern
- The Opening Price
- Entry Techniques
Fibonacci Ratios With Pattern Recognition By Larry Pesavento PDF
Lilian Glover (verified owner) –
very informative, some sections are harder to interpret and took some extra studying, but well worth the effort.
Carter Hickman (verified owner) –
Great book, I ovee learning from such concise authors who know their expertice and can elucidate it in the written format I can highlight while reading.
Scarlette Roy (verified owner) –
Best value
Bailey Allen (verified owner) –
First of all I would like to preface my review by giving you a little background about my experience with Larry Pesavento and his work. I have been a long time enthusiast of Fibonacci, Elliott Wave, Gann, and other unconventional methods of market technical analysis. I also am the founder of a trader membership organization called Probability Of Success and have been exposed to numerous trading experts, authors, and educational organizations. Recently, Larry gave a 2.5 hour presentation to our membership about utilizing the strategies discussed in this and other books he’s written. His partner recommended to me that I read this book rather than his most recent work since this is where it all began. Otherwise, I normally would not buy a book with such a low rating. I have also been studying his weekly newsletter that implements these strategies on actual trades.
So having read the book and being acquainted with Larry and his organization and strategies, I have the following to say:
Pros:
The techniques in the book are solid and do work in real world applications. Larry Pesavento has a genuine interest in helping people become successful. He’s not just out to make a buck. This is very uncommon in the trading world. Larry is as sharp as a tack and really knows what he’s talking about. He is a practical and disciplined trader and person. I don’t get the impression that he would trade or teach any technique that he couldn’t prove to himself would work consistently and successfully.
Cons:
This is a HUGE Con for this book that I suspect is the reason why it has such low reviews. This book says that it was edited by someone, but I can tell you that by all appearances it wasn’t. There are figures missing from charts and pages. There are figures in places where they don’t belong. There are figures where other figures should be. All in all, if I didn’t have the benefit of Larry and his partner Shelli to help me with understanding this book, I would have never finished it. Or, I would have certainly given it a poor review and assumed that what it was teaching was not worthwhile for my trading.
I will say what I tell our members. If you read this book, be prepared to have to work at it since there are many errors. You may be better off with the Trade What You See book which is Larry’s more recent work. Trade What You See was also highly recommended by some of our members who have been working with Larry’s techniques for some time. If you feel like you’re up to the challenge and still want to read the Fibonacci Ratios book, I will say that Larry’s methodology is definitely worthwhile pursuing and adding to your existing methods of technical analysis. It is a good compliment to any trading strategy or a replacement since these techniques do in fact lead the market as opposed to traditional technical analysis which trails price action. If you have read this book, don’t let it discourage you as to the viability of this approach. Get the more recent book before you decide. You can also go to our member website and view the video of Larry’s presentation to help you understand the material in the book. It would be a shame to let your experience of this book deter you from learning from one of the most brilliant minds in this field. He is a rarity in the world and the world of trading. I encourage you to explore his work further.
Marcelo Giles (verified owner) –
This is the best book on trading I have read in a long time. Great practical application for my 4X and option trading. Easy to understand format and content. Excellent book that every trader should own.
Mack Holmes (verified owner) –
Easy to follow book with some very interest chapters on the use and occurrence of Fib numbers. Good explanation and sue of Gartley patterns.
If you are and “advanced beginner” this book could give you a methodology that could help you to reach the next level, definitely worth your money and time.