Well, as a student of Gann techniques and their derivatives, I sure can tell you about esoterism in the stock market. The trouble is that trading is part science and part art, and new traders have to find that balance on their own. For example, most folks like to talk about Gann and his astro analysis. But the simple truth is that there were no computers in Gann's day, and he was simply trying to find a consistent method to time the market. The mysterious Gann wheel, and the periodicity of the planets were just two of his overall methods
I already said it: Gann has said to have found the True RATIONAL EQUATIONS of supply and demands like I claim also but he didn't want to reveal them, he prefer to give esoteric rules instead. As for astrology I am making a detective enquiring for the link between Stock market and astrology. I have also found that there was a famous astro-trader - since stock market is as old as 13th century in Europe - during the 16th century. So the link could be as old as Religion for States Bonds, derivatives and Banking existed already under the Romans. As I said some researchers have been proved that the manuscripts of both new and old testaments were fake writhings for political reasons it could be that Astrology has been associated with stock market since its origin also for I don't see any reason for such idioties appear in modern age except than perpetrating an old but oral tradition. I don't mean that there is no true correlation (although the pseudo proof I saw doesn't satisfy me and I will have to do the statistical checking myself) I mean that because of my equations I can prove that if there is a correlation, then the constraint on times is purely artificial since my equations already impose a constraint on prices so that there is only a degree of liberty of time. If both time and price had degree of liberties then I couldn't prove such thing but it is not the case, time is derived from activites of the market and activity is not fully independant from price.
Borrow a fishnet stocking from your favorite hooker, overlay that on a stock chart, and you'll have all the S/R levels you'll ever need.
careful, whether or not these are true or not, Fib number sequencing has morph'd into a subculture all its own as respects trading and is one of the more revered truths of this cult....
Not human nature, just nature. Fib ratios describe mathematically alot of natural things such as the arc of waves crashing, the development of round sea shells, and has already been stated, the golden ratio. The point isn't that rabbit reproduction equals human nature. Rather that the specific pattern he identified is reproduced throughout nature. Strange coincidence?? I dunno know.
a lot doesn't mean all. Laplace-Gauss Law or Normal Law also decribe mathematically a lot and perhaps even more a lot than even fibo Since I have being in food engineering school and had to study biology and plants (and also petroleum as I said to explain why I have discovered my equations) I remember at least that Plants do follow Fibonacci law but also another one called Lucas law - I am happy not to study them any more what a headache to learn all these plants with the number of petals etc. I hated that . In the case of plants there is a genetic code, an algorithm which is totally deterministic that explain this behavior whereas in stock market there isn't any - a priori - except if one suppose either like the mystics that the market follow the stars or that the market is engineered by human group of interests - which could use stars as proxy to hide their manipulations behind esoterism which is perfectly possible since the nazism has already used such esoteric pretext to hide their acts will behind "superior reasons". As I said the devil lies in the details. People don't look at detail whereas science in essence does this and every discovery in science has always come from examining paradox in current beliefs or theories. As for finance it is not so difficult to discover such paradox since there are many. It is only the will of interests that explain why some simplist ideas like VAR are promoted by the Big Brokers in Business Schools whereas independant researchers like Nassim Taleb criticised it. I suspect that it is the same thing for my equations. I don't deny that there is fibo ratios since I wrote it in my guide, what I deny is the esoteric cause that is given as "natural" which doesn't mean anything since it is equivalent to say "because of God" in fact for some believers God is just nature haha ! Perharps God is the creator of Gravitation but that doesn't mean than Newton has not to look for discovering the law behind the elliptic orbit of the planets. So the same for the golden ratios of the market. Pretending that it is "natural" is just explaining nothing.
That is Elliott Wave theory, which is closely related to Fibonacci. In fact, Fibonacci is the mathematical basis for EW. In EW, one of the basic tenets, is: * Impulsive Waves (Trend) move in 5 waves, * Corrective Waves (Counter-trend) move in 3 waves Because we are in a bear market, the trend is down, so in general, downside moves occur in 5 waves, upside moves in 3 waves. The opposite was true prior to 2000 because we were in a bull market then: the trend was up back then, so upside moves occurred in 5 waves, downside moves occurred in 3 waves. You can go back and check this on any timeframe.
When Elliott created his theory he didn't notice Fibonacci ratios, his theory was about the sequences of waves, it was only after a remark from another analyst about the wave ratios that Fibonacci was introduced in elliott wave. I must have the history somewhere I will post it then.
Not a Gann trader but I would add that the mysterious techniques will have to be confirmed by the other techniques people are mostly familiar with. Finding the link beween different tools makes this particular analysis very strong. You still need the ability to read the present moment of the market to trade and make money. You can become a good broker but not a good trader just by employing Gann. You have to develop trading skills. Good Trade! Trend