Fibonacci Ratios With Pattern Recognition


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All rights reserved. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or by any information storage or retrieval system without the prior written permission of the copyright owner unless such copying is expressly permitted by federal copyright law. ISBN 0-934-3SO-36-8 Published by TRADERS PRESS, INC. The material contained herein is not to be taken as advice to buy or to sell specific securities. The information presented is based on sources we believe to be reliable and has been carefully checked for completeness and accuracy but cannot be guaranteed. TRADERS PRESS I N C O R P O R A T E D PO BOX 6206 Greenville, SC 29606 Books and Gifts for Investors and Traders 800-927-8222 Fax 864-298-0221 [email protected] HTTT://Traderspress.com TABLE OF CONTENTS Preface Introduction 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 Appendices Additional Readings Books and Gifts for Investors and Traders Publishers of: Commodity Spreads: A Historical Chart Perspective (Dobson) The Trading Rule That Can Make You Rich* (Dohson) Viewpoints of a Commodity Trader (Longstreet) Commodities: A Chart Anthology (Dobson) Profitable Grain Trading (Ainsworth) A Complete Guide to Trading Profits (Paris) Traders Guide to Technical Analysis (Hardy) The Professional Commodity Trader (Kroll) Jesse Livermore: Speculator-King (Sarnoff) Understanding Fibonacci Numbers (Dobson) Wall Street Ventures & Adventures through Forty Years (Wyckoff) Winning Market Systems (Appel) How to Trade in Stocks (Livermore) Stock Market Trading Systems (Appel & Hitschler) Study Helps in Point and Figure Technique (Wheelan) Commodity Spreads: Analysis, Selection and Trading Techniques (Smith) Comparison of Twelve Technical Trading Systems (Lukac, Brorsen, & Irvvin) Day Trading w i t h Short Term Price Patterns and Opening Range Breakout (Crabel) Understanding Bollinger Bands (Dobson) Chart Reading for Professional Traders (Jenkins) Geometry of Stock Market Profits (Jenkins) Please write or call for our current catalog describing these and many other books and gifts of interes investors and traders. 1-800-927-8222 FAX 864-298-0221 [email protected] HTTI'://Traderspress.com This book is dedicated to Benida. You are the reason I am still here to enjoy all of my friends and family. Everyone deserves to have someone love them this much in a lifetime. PREFACE 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 themselves as resident experts. 1 lay no claim to being an expert. However, my studies always included an extensive e x a m i n a t i o n of Fibonacci numbers. My pragmatic position on anything I learned is t h a t 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 m a t e r i a l s t i m u l a t e s your interest in the subject, then introducing you to it w i l l 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 an
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