Elliott wave principle and Fibonacci retracement). However, other market analysts have published analyses suggesting that these percentages and patterns are not supported by the data. Mondrian has been said to have used the golden section extensively in his geometrical paintings, though other experts (including critic Yve-Alain Bois) have discredited these claims. Golden angle. Section d'Or. List of works designed with the golden ratio. Plastic number. Sacred geometry. Silver ratio. Supergolden ratio. "Golden Section" by Michael Schreiber, Wolfram Demonstrations Project, 2007. Golden Section in Photography: Golden Ratio, Golden Triangles, Golden Spiral.
golden sectiongolden meanφ
technicaltechnical analysttechnical analysis software
Elliott wave principle and the golden ratio to calculate successive price movements and retracements. Fibonacci ratios – used as a guide to determine support and resistance. Momentum – the rate of price change. Point and figure analysis – A priced-based analytical approach employing numerical filters which may incorporate time references, though ignores time entirely in its construction. Resistance – a price level that may prompt a net increase of selling activity. Support – a price level that may prompt a net increase of buying activity. Trending – the phenomenon by which price movement tends to persist in one direction for an extended period of time.
Fibonacci sequenceFibonacciFibonacci spiral
Elliott wave principle. Embree–Trefethen constant. The Fibonacci Association. Fibonacci numbers in popular culture. Fibonacci word. Strong Law of Small Numbers. Verner Emil Hoggatt Jr. Wythoff array. Periods of Fibonacci Sequences Mod m at MathPages. Scientists find clues to the formation of Fibonacci spirals in nature.
Finance is a field that is concerned with the allocation (investment) of assets and liabilities over space and time, often under conditions of risk or uncertainty. Finance can also be defined as the art of money management. Participants in the market aim to price assets based on their risk level, fundamental value, and their expected rate of return. Finance can be split into three sub-categories: public finance, corporate finance and personal finance.
bull marketbear markettrend
A market trend is a perceived tendency of financial markets to move in a particular direction over time. These trends are classified as secular for long time frames, primary for medium time frames, and secondary for short time frames. Traders attempt to identify market trends using technical analysis, a framework which characterizes market trends as predictable price tendencies within the market when price reaches support and resistance levels, varying over time.
List of valuation topicsFinanceList of insurance topics
Elliott wave principle. Economic value added. Fibonacci retracement. Gordon model. Growth stock. Mergers and acquisitions. Leveraged buyout. Takeover. Corporate raid. PE ratio. Market capitalization. Income per share. Stock valuation. Technical analysis. Chart patterns. V-trend. Paper valuation. Behavioral finance. Dead cat bounce. Efficient market hypothesis. Market microstructure. Stock market crash. Stock market bubble. January effect. Mark Twain effect. Quantitative behavioral finance. Quantitative analysis (finance). Statistical arbitrage. Bond (finance). Zero-coupon bond. Junk bonds. Convertible bond. Accrual bond. Municipal bond. Sovereign bond. Bond valuation. Yield to maturity.
Stochasticsstochastic volume oscillators
According to Lane, the Stochastics indicator is to be used with cycles, Elliott Wave Theory and Fibonacci retracement for timing. In low margin, calendar futures spreads, one might use Wilders parabolic as a trailing stop after a stochastics entry. A centerpiece of his teaching is the divergence and convergence of trendlines drawn on stochastics, as diverging/converging to trendlines drawn on price cycles. Stochastics predicts tops and bottoms. The signal to act is when there is a divergence-convergence, in an extreme area, with a crossover on the right hand side, of a cycle bottom.
Frost and Robert Prechter wrote Elliott Wave Principle, published in 1978 (Prechter had come across Elliott's works while working as a market technician at Merrill Lynch; his prominence as a forecaster during the bull market of the 1980s helped bring Elliott's wave principle its greatest exposure up to that time). There are also other analysts, such as Glenn Neely, that do not fully subscribe to Elliott's wave theory, but have used it as a starting point to develop their own wave prediction methods. Elliott wave principle. Elliott Wave Theorist. Behavioral Finance. Daniel Kahneman. Robert Prechter. "Ralph N. Elliott," biography on Market Technicians Association website.
supercycleGrand supercycle (Elliott wave theory)
Modern application of Elliott wave theory posits that a grand supercycle wave five is completing in the 21st century and should be followed by a corrective price pattern of decline that will represent the largest economic recession since the 1700s. In technical analysis, grand supercycles and supercycles are often compared to the Kondratiev wave, which is a cycle of 50 to 60 years, but these are in detail distinct concepts. Some Elliott wave analysts believe that a grand supercycle bear market in US and European stocks started in 1987. When that was proven incorrect it was later revised to be 2000 and then 2006.
Technical analyst David Aronson wrote: The Elliott Wave Principle, as popularly practiced, is not a legitimate theory, but a story, and a compelling one that is eloquently told by Robert Prechter. The account is especially persuasive because EWP has the seemingly remarkable ability to fit any segment of market history down to its most minute fluctuations. I contend this is made possible by the method's loosely defined rules and the ability to postulate a large number of nested waves of varying magnitude.
Fibonacci retracement. John Murphy, Technical Analysis of the Financial Markets, ISBN: 978-0-7352-0066-1. Stephen Petrivy, xBinOp.com (2016). Technical Analysis – Supports and Resistances.
Market Reversal in Finance is a type of a price retracement in which the value completely goes back to the beginning of the measured trading period. One of the worst market reversals in global finance is the bull rally from 2003 which peaked in 2007 and collapsed which is now popularly known as The Great Recession. As used by journalists: https://www.wsj.com/articles/what-is-a-reversal-vs-correction-1452482743. http://www.cnbc.com/2016/01/20/why-the-wild-market-reversal.html. http://www.nasdaq.com/article/5-possible-indicators-of-a-market-reversal-cm608229. http://money.cnn.com/2016/06/27/investing/brexit-consequences-2-trillion-lost/.
For information about the moral problem of trading it is necessary to refer to the public contents on web.
mass psychologycrowd behaviormob behavior
Crowd psychology, also known as mob psychology, is a branch of social psychology. Social psychologists have developed several theories for explaining the ways in which the psychology of a crowd differs from and interacts with that of the individuals within it. Major theorists in crowd psychology include Gustave Le Bon, Gabriel Tarde, Sigmund Freud, and Steve Reicher. This field relates to the behaviors and thought processes of both the individual crowd members and the crowd as an entity. Crowd behavior is heavily influenced by the loss of responsibility of the individual and the impression of universality of behavior, both of which increase with crowd size.
implied volatilitiesimplied volvolatilities implied
In financial mathematics, the implied volatility of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (such as Black–Scholes) will return a theoretical value equal to the current market price of the option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security.
In finance, an option is a contract which gives the buyer (the owner or holder of the option) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date, depending on the form of the option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day an option is taken out, or it may be fixed at a discount or at a premium. The seller has the corresponding obligation to fulfill the transaction – to sell or buy – if the buyer (owner) "exercises" the option.
The stock (also capital stock) of a corporation is all of the shares into which ownership of the corporation is divided. In American English, the shares are commonly called stocks. A single share of the stock represents fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the stockholder to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt), or voting power, often dividing these up in proportion to the amount of money each stockholder has invested.
Open interest (also known as open contracts or open commitments) refers to the total number of outstanding derivative contracts that have not been settled (offset by delivery).
futures marketfuturesfutures markets
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of contracts fall into the category of derivatives. The opposite of the futures market is the spots market, where trades will occur immediately (2 business days) after a transaction agreement has been made, rather than at a predetermined time in the future. Futures instruments are priced according to the movement of the underlying asset (stock, physical commodity, index, etc.).
In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns.
pattern analysispattern detectionpatterns
Pattern recognition is the automated recognition of patterns and regularities in data. Pattern recognition is closely related to artificial intelligence and machine learning, together with applications such as data mining and knowledge discovery in databases (KDD), and is often used interchangeably with these terms. However, these are distinguished: machine learning is one approach to pattern recognition, while other approaches include hand-crafted (not learned) rules or heuristics; and pattern recognition is one approach to artificial intelligence, while other approaches include symbolic artificial intelligence.
fractalsfractal geometryfractal curve
In mathematics, a fractal is a subset of a Euclidean space for which the Hausdorff dimension strictly exceeds the topological dimension. Fractals are encountered ubiquitously in nature due to their tendency to appear nearly the same at different levels, as is illustrated here in the successively small magnifications of the Mandelbrot set. Fractals exhibit similar patterns at increasingly small scales, also known as expanding symmetry or unfolding symmetry; If this replication is exactly the same at every scale, as in the Menger sponge, it is called affine self-similar.
In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying." Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps.
Burton G. MalkielBurton Gordon Malkiel
Burton Gordon Malkiel (born August 28, 1932) is an American economist and writer, most famous for his classic finance book A Random Walk Down Wall Street (now in its 12th edition, 2015). He is a leading proponent of the efficient-market hypothesis, which contends that prices of publicly traded assets reflect all publicly available information, although he has also pointed out that some markets are evidently inefficient, exhibiting signs of non-random walk.