Fibonacci and Gann Applications in Financial Markets

40 Fibonacci and Gann Applications in Financial Markets
Figure 3.11
when significant moves are going to take place, and while this is an easier pattern to
chart than, say, a cycle, I believe that there is more to be gained by taking time to
search for a price cycle than simply to apply the Fibonacci days pattern. Most charting
packages will have some form of detrending software embedded and often this
is a major improvement on the Fibonacci days pattern. I have used Fibonacci timelines
on occasion but have found them to be of little real use the further the current
bar is from the origin day. Indeed, if used to suggest a change in the prevailing move
to a reversal, they are useless. I would hesitate to tell readers to avoid them entirely
as I perhaps have not been able to identify a market where application is successful,
but when it comes to date prediction I prefer to use cycle analysis or Gann time
analysis instead. These both give better results and I am more confident in using
these techniques across a wider range of market and asset classes. See Chapters 5, 6
and 7 for more in-depth discussions on the use and effectiveness of fanlines, arcs
and timeline applications.