mcgaffen, the purple refers to the colour coding of the...

mcgaffen, the purple refers to the colour coding of the Weinstein market cycle which is really an analysis of money flow. Purple is used to indicate the renewal stage of the cycle where position traders, stakeholders etc are accumulating at value points. Stage 1 will see an overall slow rise in price, and delay in results enables more to be accumulated for the next Stage which has a higher growth stage. Stage one is not really suited to short term trades, maybe scalping until direction is set. Day traders are effectively locked out by uncertainty of consolidation.

Fibonacci numbers are often used in calculating natural patterns. They are commonly used for price retracement or extensions. They are used in harmonic pattern determinations such as Gartley Patterns and of course Elliot waves. They have high probability of being hit. That is not certainty because market makers know these points too and press stops around them for gain. They also have their networks who pimp on inside information in relation to announcements and we see role players on sites like HC washing sentiment for their own gain who lack objectivity.

Another application is using Fibonacci numbers looking for a timeline pattern picked up from the history of the trades. So far this has been accurate in picking the high and low points in price fluctuation. Gann traders use patterns too but based on major pivot points where there is an expectation the market will move to. Of course expectations are more reliable in bigger companies who are not operating in the infant industry space, so speculators distort the market. Then its a matter of assessing risk against reward and managing capital. The TA is a self-fulfilling prophesy for many traders the market makers understand to take advantage of in the short term. Because in the long run more data is in to establish direction. Fear is greater than greed. The trick is to work out where their bank control line lies and how far they will swing price around that average in the absence of knowledge.