Everything in life follows patterns and same also applies to stock prices. One can get the share prices upward and downward moving levels depending on the Fibonacci levels. Fibonacci numbers were developed by Leonardo Fibonacci and it is simply a series of numbers that when you add the previous numbers you come up with the next number in the sequence.
Here is an example:1, 2, 3, 5, 8, 13, 21, 34, 55. Stocks will often pull back or retrace a percentage of the previous move before reversing. These Fibonacci retracements often occur at three levels – 38.2%, 50%, and 61.8%. Actually, the 50% level really does not have anything to do with Fibonacci, but traders use this level because of the tendency of stocks to reverse after retracing half of the previous move.
See how when you add 1 and 2 you get 3? Now add 2 and 3 and you get 5, and so on. So how does this sequence help you as a swing trader?Well, the relationship between these numbers is what gives us the common Fibonacci retracements pattern in technical analysis.
Have a glance on the chart and you know where the stock is going to have a resistance or the support. The Fibonacci levels for the stocks as given in a chart is as appended below:
Fibonacci Series | Fibonacci Retracement | Fibonacci Sequence Chart
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Music can also be correlated to the stock market and for that one has to just observe the movement of the tip of the tongue while chanting "Na Ma Shi Va Ya" and we will realise that it is the directions of the five primary waves as defined in Elliott's Wave Theory. Moreover one can even plot the Nifty on music scales also as every thing in life is rhythmic in nature.
Nifty points on Music Scale -15 1/2 x
|Music Scales||Nifty Levels|
|Kakali Nishadham ||7440|
|Kaisiki Nishadham ||7146|
|Chatusruti Daivatham ||6696|
|Sudha Daivatham ||6355|
|Sudha Madhyamam ||5286|
|Anthara Gandharam ||4960|
|Chatusruti Rishabham ||4464|
|Sudha Rishabham ||4232|
Thus if we analyse further we will find that Nifty has perfectly followed the musical scale numbers and same are as appended below along with the dates.
|Nifty Level||Date||Nifty |
|Nifty High on||8th Jan 2008 ||6357|
|Nifty Low on ||21st Jan 2008||4448|
|Nifty Low on ||18th Mar 2008 ||4468|
|Nifty Low on ||27th Oct 2008 ||2252|
(See Chatusruti Rishabham in earlier scale)
Thus can we come to a conclusion that music lovers can be better traders. No formal research has been carried on the said subject and thus invite the opinion of the readers in this aspect. One can even check the Fibonacci series applicability to stocks and do remember to use the Fibonacci Calculator and make money from stock market as every thing is predictable in life including the human emotions.
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