Fibonacci, Fractals and Financial Markets - Socionomics.net

http://www.elliottwave.com/wave/FibonacciTube
What's commonly called the Fibonacci sequence is proven to exist by way of fractals in everything from human and plant DNA to the world's financial markets. Popular television shows, such as CBS's Numbers, regularly highlight the usefulness of the Fibonacci sequence. Fibonacci even played a star role in Dan Brown's mega worldwide bestselling book, The Da Vinci Code, and later the film by the same name. There's no question that Fibonacci numbers are all around us. But, why should you care?
New research by the award-winning Socionomics Institute suggests that Fibonacci might affect the way people think, the way individuals act in a crowd and even the way investors make financial decisions -- all are tied to the Fibonacci sequence. Several terms spawn from Fibonacci and what others call the Golden Ratio, including Spiral, Fractal, Herding, Golden Section, Golden Mean, Golden Number, Divine Ratio, Phi and more. However, there is only one one-stop-shop for everything Fibonacci, including the autonomous biography of the man that introduced Fibonacci to the Western world, Leonard of Pisa and the New Mathematics of the Middle Ages, otherwise known as Leonardo Fibonacci. This video is an excerpt from the Socionomic Institute's FREE online documentary History's Hidden Engine, which introduces the new science of Socionomics and the importance of Fibonacci in our everyday lives. If you'd like to watch the entire documentary or learn more about Fibonacci and the new science of Socionomics, check out additional resources at http://www.elliottwave.com/wave/FibonacciTube .

Category:

News & Politics

Tags:

• fibonacci
• leonardo
• da
• vinci
• code
• fractal
• phi
• golden
• ratio
• mean
• divine
• numbers
• financial
• market
• stock
• socionomics

[aluisious]

1) Projecting an outcome does not prove that a theory is valid. I can project whether the stock market will go up or down tomorrow based on a coin toss, but clearly even if the projection is accurate, it doesn't prove that coin tosses are good predictors.

2) We don't know whether the market will fall further.

3) If these theories are so great, why aren't the practitioners the wealthiest people in the world by now?

[dethtongue]

... quite remarkable. To find patterns in utter chaos or to create something from nothing. I've found that science these days is handicapped by questions like "what does it mean". How can you say that we live in a chaotic universe and then ask what it means? If the universe seems chaotic then you aren't seeing the order yet. Our perception is very limited. I would say that it all means that there is a strange sort of order to things that is difficult to understand. Manipulated or not.

[phillpa]

DATA, DATA, DATA! This is a great video. Thanks

[MzSexyThang86]

@aluisious they are silly 3% of traders ALWAYS make money in the market they dont tell you all the secrets as it dosen't matter because even with a hammer if you dont have the muscles to lift it it's useless so is the mind and scarced geomerty. but it does work ALWAYS!

[silverfox2358]

@gazrichards1 you can use it better to make a trading system or plan weather you make a profit or loss thus invest or gamble: £10 £20 £30 £50 £80 or £10G £20G £30G £50G if your on a loosing end you can see how to measure your losses

[gazrichards1]

don't work eh?

DOW JONES since the heady days of late 2007

draw a fib retracement from Oct 2007 high to Feb 09 low........watch the five wave Elliot wave rally (actually a bear retrace) to 11.254 that happens to be very close to Fib level 0.618 of 11234. Not bad for quasi religious horse shit!!!

if the DOW rallies back up to 11234 then breaks higher these recent choppy (since May 2010) trade will break lower forming bigger wave 3........

EWI give anyone free educational material!

[okiedokies]

@aluisious The market is a random walk. Everthing is 50:50 in a perfect market. All this chartist BS is just that.

[criskity]

Too much picking and choosing.

[jcreepg]

leonardo fibonacci didn't dis-cover anything he learned that mathematical process from my ancestors and that will be the MOORS I.S.L.A.M.

[ctrader09]

@TYX91101 couldn't agree more.

[ctrader09]

@aluisious Many people think the way you do, and don't even believe in chart patterns. This serves to confirm the validity in my mind of technical analysis and the wave principle. In my opinion The fact that Prechter and EWI have so many critics is the biggest contrarian indicator ever.

[ctrader09]

@aluisious You have some very good questions that indeed many people have (expressing doubt and looking at Elliott Wave cynically). You are correct in saying that empirical evidence alone does not prove something. However, the evidence is overwhelming. about your second question, yes, wave 5's or 3's can extend, but we can project price targets based on Fibonacci ratios to price and time. In response to your 3rd question, Elliott Wave Principle is not a crystal ball. it provides a market roadmap