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US 2006/0235780 A1Published application
Methodology of utilizing Fibonacci numbers to analyze and predict trends in financial markets
OwnerScott Carneyinventor
Life of this patent
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Abstract
One embodiment of the invention can be a methodology for analyzing financial markets using harmonic patterns which use Fibonacci derived formulae to verify historical market values for selected peak(s) and trough(s) of cyclical financial market to predict the future market value of a new trough or peak that will terminate a current market trend (e.g. a market up swing) and be the beginning point of an new mark trend having a different activity (e.g. a market downswing).
Claims20
A methodology of utilizing Fibonacci numbers to analyze financial market patterns:
- (A) Selecting the financial market and the data to be analyzed;
- (B) Identifying in data the actual market values of four historical points of distinction X, A, B and C;
- (C) Selecting at least one harmonic pattern from a set of harmonic patterns consisting of the Bat, the perfect Bat, Gartley, the perfect Gartley, the Ideal Butterfly, the perfect Ideal butterfly, the Crab, the perfect Crab, the deep Crab harmonic patterns.
- (D) Selecting the Fibonacci values for the market price differential multipliers for X-A retracement, X-A projection, A-B retracement, and B-C projection based on the selected harmonic pattern;
- (E) Calculating market place values of points of distinction B and C using X-A retracement and using A-B retracement;
- (F) Comparing the calculated market values of points of distinction B and C to the actual market values of points of distinction B and C derived for the data;
- (G) Calculating the predicted market values of point of distinction D using the X-A projection and the B-C projection;
- and
- (H) Deciding to use predicted market values of point of distinction D to determine the occurrence of a potential reversal zone in the current market trend of the financial market being analyzed.
6 more elements
A methodology of utilizing Fibonacci numbers to analyze financial market patterns:
- (A) Selecting the financial market and the data to be analyzed;
- (B) Identifying in data the actual market values of four historical points of distinction X, A, B and C;
- (C) Selecting at least 5-0 harmonic pattern
- (D) Selecting the Fibonacci values for the market price differential multipliers for X-A retracement, A-B retracement, and B-C projection based on the 5-0 harmonic pattern;
- (E) Calculating market place values of points of distinction B and C using X-A retracement and using A-B retracement;
- (F) Comparing the calculated market values of points of distinction B and C to the actual market values of points of distinction B and C derived for the data;
- (G) Calculating the predicted market values of point of distinction D using the B-C projection;
- and
- (H) Deciding to use predicted market values of point of distinction D to determine the occurrence of a potential reversal zone in the current market trend of the financial market being analyzed.
6 more elements
Dependencies are inferred from the claim text.