Fibonacci Numbers Used as Moving Averages
posted under
Philosophy of Technical Analysis
by ceecabolos
We'll cover the Fibonacci number series in the chapter on Elliott Wave Theory. However, I'd like to mention here that this mysterious series of numbers—such as 13, 21, 34, 55, and so on—seem to lend themselves quite well to moving average analysis. This is true not only of daily charts, but for weekly charts as well. The 21 day moving average is a Fibonacci number. On the weekly charts, the 13 week average has proven valuable in both stocks and commodities. We'll postpone a more in depth discussion of these numbers until Chapter 13.
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