Saturday, May 16, 2009

Amazing fibonacci relationships

Today, I played once again with the fibonacci numbers and discovered some amazing relationships between the waves in this bear market.

But first of all let's take a look on my longterm counts:

Blue count
We finished wave 4 and began the last wave down to complete Primary 1 (or Primary A). After that we should see a nice retrace lasting several months before going down again in Primary 3 (or Primary C).

Orange count
We completed Primary A early March and are now in Primary B. After we'll have finished Primary B by the end of this year the market's gonna fall once again in Primary C to finish the bear market in 2011/2012.

I refer to the blue count for the following fibonacci relationships:

The market declined/rose...

20.247% in wave 1
14.579% in wave 2
53.703% (53.28%) in wave 3 (depending on which low you refer to: 666.79 or (672.88))
39.5% (38.237%) in wave 4 (depending on which low you refer to: 666.79 or (672.88))

Let's compare the declines of our downwaves 1 and 3:

53%/20% = ~2.62 => a perfect fibonacci ratio

and now the upwaves 2 and 4:

39%/15% = ~2.62 => once again ; )

ok, now let's compare wave 1 with wave 2 and wave 3 with wave 4:

20%/14% = ~1.38 => again a fibonacci ratio. Wanna guess the ratio for wave 3 and 4? : )

53%/39% = ~1.38 => amazing, isn't it? : D

I'm glad to see another nice ratio after we'll have finished wave 5 ; )

(for better results use the exact numbers)

short term
Since 8190/876 has held till now the bullish count is still valid. If we are in the bearish count we should drop hard on Monday or on Tuesday. So I think I'll do a short term update after I'll know which count is the correct one.


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