tailieunhanh - Fibonacci applications and strategies for traders Chapter 9

Tham khảo tài liệu 'fibonacci applications and strategies for traders chapter 9', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 132 COMBINING PRICE AND TIME IIODD-- _ .. . .ii . .11hi. . h ii. .ti ii. .m . 03 on 10 II I a I D3 OH 05 Ob DI DS DR II 12 01 02 03 OH 05 01 03 01 ID II 12 01 03 OH 05 Ob 01 OH OS 13 1122 2b 02 Ob H 15 20 ZH 23 02 01 II 15 22 2b 3J 05 05 13 13 222131 Ob IB IS IR ZH BRITISH POUND 55 MHO .618 DIR 1 Figure 8-6 Weekly British pound chart from 08-89 to 07-92. Buy and sell signals using the time analysis with time goals days and entry rules. Source TradeStation Omega Research Inc. SUMMARY If we compare the signals in Figure 8-5 generated by price with those in Figure 8-6 which were the produce of time it can be said There is no particular order in the signals. Trades resulting from extensions can occur before or after those based on corrections. The technique of working with time goal days is very different from that of using extensions or corrections. By using time goal days we hold a market position most of the time. Because the objective is to stay close to the trend the result is that there are more trades in sideways periods than in trending markets. The time goal signals and signals based on 62 corrections coincided with all major trend changes within the test period. Although this feature was not used in the trading strategy if offers interesting possibilities for improving performance. 9 The Logarithmic Spiral The logarithmic spiral provides the link between price and time analysis. It is the answer to a long search for a solution to forecasting both price and time. The logarithmic spiral is called the most beautiful of mathematical curves. It was briefly discussed in Chapter 1. This spiral has occurred for millions of years in nature. It is the only mathematical curve to follow the pattern of growth expressed in the spira mirabilis commonly called the nautilus shell. Two segments of the spiral may be different in size but not in shape. The spiral is without a terminal point. Figure 9-1 shows that as the .