A computational exploration of the efficacy of Fibonacci sequences in technical analysis and trading

Sukanto Bhattacharya, Kuldeep Kumar

Research output: Contribution to journalArticleResearchpeer-review

3 Citations (Scopus)

Abstract

Among the vast assemblage of technical analysis tools, the ones based on Fibonacci recurrences in asset prices are relatively more scientific. In this paper, we review some of the popular technical analysis methodologies based on Fibonacci sequences and also advance a theoretical rationale as to why security prices may be seen to follow such sequences. We also analyze market data for an indicative empirical validation of the efficacy or otherwise of such sequences in predicting critical security price retracements that may be useful in constructing automated trading systems.
Original languageEnglish
Pages (from-to)185-196
Number of pages12
JournalAnnals of Economics and Finance
Volume7
Issue number1
Publication statusPublished - 1 May 2006

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Efficacy
Technical trading
Technical analysis
Security price
Trading systems
Asset prices
Rationale
Methodology
Market data

Cite this

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A computational exploration of the efficacy of Fibonacci sequences in technical analysis and trading. / Bhattacharya, Sukanto; Kumar, Kuldeep.

In: Annals of Economics and Finance, Vol. 7, No. 1, 01.05.2006, p. 185-196.

Research output: Contribution to journalArticleResearchpeer-review

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