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We could see Fibonacci at work in the stock markets. Elliott Wave also demonstrated Fibonacci sequence in the wave counts. Below is an example of how Fibonacci and fractal works in the nature. Each water drop captured using high speed camera shows that the drop was bounced back while a bigger portion of itself joined the water surface. We could see that this happens so often in stock markets. Each market rally was interrupted with trend correction while each stock market fall was pause by bounce-back rally before continuing its trend directions.

It would be wonderful to observe if the bounce-back strength of the water drop coincide with the Fibonacci retracement ratio. Hopefully someday, some scientists take the effort to measure that.

There are some magical numbers and sequences of numbers that have their prints in the nature. They were there in the first place because God who created the whole universe encoded them just like His signature or autograph. Now, we might wonder, why is these magical numbers so important in our discovering of the secrets of the stock market trading and investing business? The simple and quick answer to that question is that these numbers resonate and vibrate in the stock markets, commodity markets and forex just as they are found in the universe that we live in. This is true for any financial markets. Before you discredit my claim of the magical number pi (π) and its application in making money in financial markets, take a good look of Fibonacci. This magical sequence of numbers of Fibonacci that starts from 1, 1, 2, 3, 5, 8, 13, 21, and etc, had been a very good technical indicator of when (time) and where (price) should the index futures reverses its trend. The number of pi (π) is so magical that its decimal portion is unique and there is no repetition of patterns. Just in case that some of you wonder what pi (π) is, it is a constant number where pi π = 3.1415926535897932384626433832795… The study of market cycles and market geometry uses pi (π) to pin-point the exact reversal date and price for stock markets and other financial markets. Here I present to you a video that sings out the magical number of pi (π).

We often heard the wise sayings from experienced stock traders and investors such as Warren Buffett, George Soros, and Jesse Livermore. The quotations of their thoughts on stock market have been such a great lessons for us all who aspire to understand and grasp the mechanism and the working of these profitable financial markets. In this post, I will share my version of personal thoughts for stock traders and investors.

Read entire post of Stock Market Wisdom: Quotations by Benjamin Lee (Part 1)

There are many laws governing the financial markets just as there is gravity law to hold things together on the earth. One of the powerful financial market laws is summed up in this phrase "Time is the Cause, Volume is the Fuel and Price is the Result." There is a lot of market wisdom in this principle. If we could truly understand this, we could potentially unlock the mystery of the financial markets. In fact, if we look hard enough at the world that surrounded us, we could see patterns that conform to this universal law that works beautifully in the stock markets. In fact, I spent a lot of time researching into this phrase and would like to share some of my thoughts with you.

Read entire post of Time is the Cause, Volume is the Fuel and Price is the

You and I can agree that there is such thing called the Law of Gravity. You throw an apple up into the air and it will eventually fall down to the ground. That is the law of gravity at work. Fibonacci is one of the wonderful codes that consistently appear in the nature, universe and even the stock market. It seems hard to believe that there is mathematical relationship that exists in the stock market that seems to be random. In fact the equity market is far from being random or chaotic. There is order to it just as there is order in the solar system. Time has proven again and again that Fibonacci, a sequence of numbers discovered by Leonardo of Pisa, works its magic by repeating patterns in the financial markets. It is a sequence of numbers beginning from 0, 1 where the next number is the sum of previous two numbers thus yielding a sequence of 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and etc. If you look deeper, there is a ratio between the numbers of a fixed interval that approach the Golden Ratio of 0.618 and its inverse of 1.618. You can also discover Fibonacci Sequence of Numbers encoded inside the Elliott Wave Count. Again, you may be skeptical about this. Don’t push the theory aside until you really look deeper inside. I was once a skeptic but now am a believer and student of this wonderful stock market analysis tool called Fibonacci.