Courtesy of Read the Ticker.
When Al Capone ran a scam, he new the outcome, he new his forecast would be on the money. When forecasting stock resistance (or support) zones in the future there really only a few tools that work, and one would be the Gann Angle with Fibonacci Arcs.
Previous Post: SP500 How much higher?
The chart below shows how two points are selected [(a) and (b)] which have a number of bars between them which on the count is equal to a Fibonacci number. Fibonacci numbers are found through out life forms in nature as the form represents the best design for survival. A healthy human shape is a form of fibonacci design, so why not stock price. To be fair the fibo arcs work best when the stock has a popular public following as increased human involvement encourages the natural fibonacci sequence to work.
The other tool which readtheticker.com approves of is the Wyckoff Cause and Effect Point and Figure count guide, but that is for another post.
Investing Quotes…
…"By knowing the exact vibration of each individual stock I am able to determine at what point each will receive support and what point the greatest resistance is to be met"…
William D Gann
..“If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong.”..
Bernard Baruch
..“It is much harder to sell stocks correctly than to buy them correctly.” Because of the emotional aspect of trading, if a “stock went up, the average investor would hold because he wants more gains – he’s exhibiting greed. If the stock declines, he also holds on and hopes the stock will come back so he can at least sell and break even – he’s hoping against hope”..
Bernard Baruch
.."Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception"..
George Soros
..“By failing to prepare, you are preparing to fail”..
Benjamin Franklin
