Technical analysis of price formations with Fibonacci sequence on Warsaw stock exchange

• Autorzy: Lahutta D.
• Języki publikacji: EN

Abstrakty

EN

Investing on the stock market is associated with taking risk. Contemporary investors use various methods that support their decisions. Apart from fundamental analysis, the technical analysis, in which a variety of tools is used allows for a precise study of diagrams and trends and, therefore, enabling forecasting future changes in the prices of financial instruments, becomes more and more popular. With that, investors are able to adequately react and maximise their profits or minimise risks on the stock market. The purpose of this article is the presentation and description of technical analysis tools based on Fibonacci sequence with a particular emphasis on price patterns created using Fibonacci numbers. In the first part of the article the author presents Fibonacci sequence and the golden ratio, then pointing out the possibilities of its use on financial markets. Moreover, the attempt of finding the two main types of price patterns in the actual realities of stock market is conducted, within markings of polish index WIG20. The article ends with conclusions concerning the use of Fibonacci numbers and the golden ratio in the technical analysis, and the possibility of effective price pattern application in the actual investment

• Wydawca: -
• Czasopismo: World Scientific News
• Rocznik: 2016
• Tom: 57 Special Volume
• Opis fizyczny: p.381-396,fig.,ref.

Twórcy

autor

Lahutta D.

• Department of Finance and Accounting, Faculty of Management, Lublin University of Technology, 38 Nadbystrzycka Str., 20-618 Lublin, Poland

Bibliografia

• [1] Barber B. and Terrance O. (2011). The Behaviourof Individual Investors, SSRN, retrieved from: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1872211.
• [2] Beck M. and Geoghegan R. (2010). The Art of Proof: Basic Training for Deeper Mathematics, Springer, New York, NY.
• [3] Fischer R. (2015). Fibonacci Applications and Strategies for Traders, John Wiley & Sons, Inc., New York, NY.
• [4] Fischer R. and Fischer J. (2003). Candlesticks, Fibonacci, and Chart Pattern Trading Tools. A Synergistic Strategy to Enhance Profits and Reduce Risk, John Wiley & Sons, Inc., Hoboken, New Jersey.
• [5] Gartley H. (1935). Profits in The Stock Market, Traders’ Press, New York, NY
• [6] Gaucan V. (2011). How to use Fibonacci retracement to predict forex market, Journal of Knowledge Management, Economics and Information Technology, Economics, Issue No. 2, Knowledge Management,retrieved from: http://www.scientificpapers.org/wp-content/files/1134_How_to_use_Fibonacci_retracement_to_predict_forex_market.pdf
• [7] Hartle T.,Triangles and Trends, Technical Analysis of Stock & Commodities, February 2000, Vol. 18, No. 2, p. 24-30.
• [8] Nison S.(1991). Japanese candlestick charting techniques: a contemporary guide to the ancient investment technique of the Far East, Paramount Communications Company, New York, NY.
• [9] Nowakowski J. and Borowski K.(2005). Zastosowanie Teorii Carolana i Fishera na rynku kapitałowym, Wydawnictwo Difin, Warszawa.
• [10] Pesavento L.(1997). Fibonacci Rations with Pattern Recognition, Traders Press, Inc., Greenville, SC.
• [11] Posamentier A.S.and Lehmann I.(2007). The (Fabulous) Fibonacci Numbers, Prometheus Books, New York 14228-2119, NY.
• [12] Schneider R.P., A Golden Product Identity for e, Mathematics Magazine,Vol. 87, No. 2 (2014)132-134.
• [13] Teseo R.,The Butterfly Setup, Technical Analysis of Stock & Commodities, January 2001, Vol. 19, No. 4, p. 52-56.
• [14] Teseo R., The Gartley Setup, Technical Analysis of Stock & Commodities, January 2001, Vol. 19, No. 1, p. 40-47.
• [15] The Trader’s Journal, September 2006, vol. 2, p. 19

Uwagi

EN

1st INTERNATIONAL SCIENTIFIC CONFERENCE, dilemmas of scientific research in various fields of science: natural sciences, science and technology, economic and social sciences, humanistic sciences, 10th October, 2016, Cracow, Poland