Friday, July 22, 2011 9:13:51 PM
FIBONACCI MATH!!
So what is it about these two sets of 3 fibs that caused the moves? I've roughly outlined them in red, they are the 1.128 - .707 - 1.414 sequence at the top and the .886 - 2 - 1.618 sequence at the bottom.
I've backed up the chart to show what was presented at the time of the last candle shown on the screen. There was a 90 pip drop after the top sequence of fibs so how to know it's coming mathematically?
I've looked for all sorts of things mainly using what I call the "third line". In the top scenario, it would be the .707. In the bottom scenario it would be the .886. The reason I did this is because as the chart prints, that fib back there is static and I feel like the coming move is based off of the relationship of the other two lines to that "third" line.
Been looking at combinations of the square roots, offsets of the square roots, relationship to Pii, Pascals triangle, prime variations of fibonacci, diagonals using the fib ratio in correlation to the diagonal (1.902), etc. Burned up a TON of backtests on different combinations which work sometimes and not others, and some neat Excel calculations but it still eludes me.
Anyone that has a mathematical answer or approach that's repeatable across different fib combinations I'll happily give them an EA that uses the algo.
Here's an Excel sheet with some interesting relationships for starters.
So what is it about these two sets of 3 fibs that caused the moves? I've roughly outlined them in red, they are the 1.128 - .707 - 1.414 sequence at the top and the .886 - 2 - 1.618 sequence at the bottom.
I've backed up the chart to show what was presented at the time of the last candle shown on the screen. There was a 90 pip drop after the top sequence of fibs so how to know it's coming mathematically?
I've looked for all sorts of things mainly using what I call the "third line". In the top scenario, it would be the .707. In the bottom scenario it would be the .886. The reason I did this is because as the chart prints, that fib back there is static and I feel like the coming move is based off of the relationship of the other two lines to that "third" line.
Been looking at combinations of the square roots, offsets of the square roots, relationship to Pii, Pascals triangle, prime variations of fibonacci, diagonals using the fib ratio in correlation to the diagonal (1.902), etc. Burned up a TON of backtests on different combinations which work sometimes and not others, and some neat Excel calculations but it still eludes me.
Anyone that has a mathematical answer or approach that's repeatable across different fib combinations I'll happily give them an EA that uses the algo.
Here's an Excel sheet with some interesting relationships for starters.
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