Figure 5.12. The siren song of the markets can be alluring. Sometimes too alluring. Learn to walk away.: 2006 "Fxstreet.com. The Forex Market." All Rights Reserved.
Fibonacci is not a trading tool; it's a mathematical law of nature. Leonardo de Pisa was an Italian mathematician who was given the name of Fibonacci posthumously, Fibonacci being derived from filius Bonacci or "son of Bonaccio."
I am particularly interested in Fibonacci numbers in nature. Whether you are looking at the rise of pyramid walls, spirals of a nautilus shell, leaves on a stem, fruitlets on a pineapple, the flowering of an artichoke, the bumps on a pinecone, the way cells split, the curves of a wave, or the branching of trees . . . they can all be explained by the Fibonacci sequence. But the best proof is seeing these lines at work as they show you dynamic support and resistance on a chart. So let's get to it. Just remember that these lines are not just trading tools. The bigger picture is that they are able to consistently project psychology and human nature.
In this chapter I will share with you how I incorporate Lazy Days Lines on a daily basis. The Lazy Days Lines (Fibonacci-based moving averages) are the short cut—the objective alternative. This is the best way in my opinion to identify support, resistance, and trendlines more objectively on your charts.
All of the ...