A computational exploration of the efficacy of Fibonacci Sequences in Technical analysis and trading
Bhattacharya, Sukanto and Kumar, Kuldeep (2006) A computational exploration of the efficacy of Fibonacci sequences in technical analysis and trading is published in the Annal of Economics and Finance, Volume 7, Issue 1, May 2006, pp. 219-230.
This freely accessible copy is provided courtesy of Annals of Economics and Finance
2006 HERDC submission
Among the vast assemblage of technical analysis tools, the ones based on Fibonacci recurrences in asset prices are relatively more scientific. In this paper, we review some of the popular technical analysis methodologies based on Fibonacci sequences and also advance a theoretical rationale as to why security prices may be seen to follow such sequences. We also analyze market data for an indicative empirical validation of the efficacy or otherwise of such sequences in predicting critical security price retracements that may be useful in constructing automated trading systems. © 2006 Peking University Press
Sukanto Bhattacharya and Kuldeep Kumar. "A computational exploration of the efficacy of Fibonacci Sequences in Technical analysis and trading" Business papers (2006).
Available at: http://works.bepress.com/kuldeep_kumar/1