• Login
  • Register
  • Search

The Compatibility between Fibonacci Sequence and Elliott Impulse Wave in the Context of A-share Market

Yufeng Sang

Abstract


The connections between Fibonacci sequence and Elliott impulse wave that Ralph Elliot has proposed in Elliott Wave Principle are not valid all the time owing to the type and variability of the stock market. It is a probabilistic event which can reflect the compatibility between Fibonacci sequence and Elliott impulse wave. In order to explore the compatibility between Fibonacci sequence and basic-form Elliott impulse wave in the context of Chinese A-share market, a research via analyzing the historical trend of 50 core assets’ individual stocks was conducted in Chinese A-share market. The study reveals that Fibonacci sequence does not highly fit basic-form Elliott impulse wave in the context of Chinese A-share market. Suggestions for investors are diversifying the investment strategy to enhance risk controllability, rather than using Elliott Wave Principle singly.

Keywords


Fibonacci Sequence; Golden Ratio; Basic-form Impulse Wave; A-share Market

Full Text:

PDF

References


Hadis SE. Fibonacci squared. Trading Techniques 1999; 38–42.

Rudy T. The Elliott-Fibonacci connection. Trading Techniques 2001; 52–54.

Deng T. On the basic analysis of Elliott Waves Principle.” (in Chinese) New Economy 2016; 20: 52–53.

Dunlap RA. The Golden Ratio and Fibonacci Numbers, World Scientific Publishing 1997.

Duan H. Elliott wave theory and the Fibonacci sequence-gray model and their application in Chinese stock market. Journal of Intelligent & Fuzzy Systems 2018; 34: 1813–1825.

Zhu F. Some of the ratios in the Shanghai Composite Index, Association for Science and Technology 2010; 12: 139–140.

Wang L. An Empirical Analysis of Eliot Wave Theory in China’s Futures Market, China’s Foreign Investment 2012; 4: 253–254.

Liu H. “The existence of the Elliott wave model in China’s stock market.” (in Chinese) value engineering 2005; 5: 124–128.

Wang Z, et al. Research of the Elliott Wave Theory Applications Based on CBR. Intelligent System Design and Engineering Applications (ISDEA), Third International Conference on IEEE Computer Society 2013.




DOI: http://dx.doi.org/10.18686/fm.v6i1.3266

Refbacks