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Trading
Simple Fibonacci Retracements
By Larry Pesavento
One of the advantages of trading with pattern recognition is that the numbers
from sacred geometry i.e. (the Fibonacci summation series) can be used to
determine entry points and profit objectives.
Enclosed is an intra day chart on the gold market that illustrates one of these
patterns. Mathematically, the work by Dr. Andrew Lo from MIT that was published
in his trailblazing book “A Non Random Walk Down Wall Street” has made pattern
recognition more popular than ever. This is the primary reason that you’re
seeing more charts on Bloomberg, CNBC and all of the financial press. On a
recent trip to the far east including China, I was amazed to find the financial
papers covered with daily stock charts, commodity charts and foreign currency
charts. These countries, some of which do not even have commodity exchanges.
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