Now you can tell that the frequent occurrence of the golden ratio is natural phenomenon. What do you think about the financial market? As you know, financial market is made by man. Would the golden ratio play an important role in the financial market? If so, it would be quite surprising. The truth is yes.
This book will introduce you the brand new concept called “Equilibrium fractal wave” for the financial trading. This powerful concept can guide and improve your practical trading. This book can also help the strategist to create new trading strategies for Stock and Forex market. This book was written to introduce the main book: Financial Trading with Five Regularities of Nature.
If we understand the structure and the behaviour of the financial market, we can create better trading strategies for sure. In this article, we will help you to understand two important fractal based scientific tools including Hurst Exponent and Equilibrium Fractal wave index. We explain these two tools in a simple language for the example of financial trading.
Now the real question is “Why do the Fibonacci ratios work or not work for our trading?”. You will find that the Fibonacci ratios are without doubt the popular topics in many major trading websites including www.investopedia.com or www.stockcharts.com. Even after reading dozens of articles about Fibonacci ratio, it is not easy to spot any rational behind the method.
Gann’s angle was one of the very first concept using the geometric study between price and time for practical trading (Gann, 1935). In spite of the powerful idea behind the Gann’s angle, the chart scaling issue makes the Gann’s angle less practical for traders. In this book, we suggested the alternative approach of establishing the geometric relationship between price and time through probability.