Overview Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of Gizeh in Egypt. Fibonacci numbers are a sequence of numbers in […]
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Overview The Four Percent Model is a stock market timing tool based on the percent change of the weekly close of the (geometric) Value Line Composite Index. It is a trend following tool designed to keep you in the market during major up moves and out (or short) during major […]
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Overview Fourier Transforms were originally developed as an engineering tool to study repetitious phenomena such as the vibration of a stringed musical instrument or an airplane wing during flight. It is used in technical analysis to detect cyclical patterns within prices. It is beyond the scope of this book to […]
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Overview A basic principle of technical analysis is that security prices move in trends. We also know that trends do not last forever. They eventually change direction and when they do, they rarely do so on a dime. Instead, prices typically decelerate, pause, and then reverse. These phases occur as […]
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Overview Developed by Martin Zweig, the Puts/Calls Ratio (“P/C Ratio”) is a market sentiment indicator that shows the relationship between the number of Puts to Calls traded on the Chicago Board Options Exchange (CBOE). Traditionally, options are traded by unsophisticated, impatient investors who are lured by the potential for huge […]
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