Ha, I'll just touch on Fibs. and harmonic trading for a second or two.
Scott Carney is the best book I have on Harmonic Trading but only volume 1. He has taken the originator of this pattern recognition technique (Gartley) to what back then was a new high (published 1999). So that's the guy I would recommend if you haven't already read him. His flexible approach in placing the PRZ was at last a deviation from many authors who insist on a certain and exact level for things to happen, and of course then go and find them.
Secondly and perhaps foremost re Fibonacci numbers. The first thing I like to point out to those that rely heavily on them is that in the golden ratios in the sequence based on Fibonacci we have ,,,, 0.0 to 0.236 then 0.236 to 0.05 then 0.05 to 0.618 then 0.618 to 1.00.
The first departure from Fibonacci is including 50% or 0.5 - it is included solely because it satisfies the human brain to have a 50% point, it is not a Fib. no.
The level at 0.236 is also a bit of a stretch to a purist but has been included since day one and is accepted.
Second fiddle is that there is no primary Fib. ratio that gives a 78.6% level or 0.786. So why is it on a lot of charting packages? The answer is when charting using computers was becoming popular our friends in the USA were disturbed by that gap from .618 to 1.0 - there had to be something there surely. It is a large gap. The first solution was to use 76.4% because it was 100 - 23.6..... see where I'm going? You'll still see 76.4 on some very old charts. Then someone had a Eureka moment and discovered that 0.786 was the square root of the primary Fib. no. 0.618 ...... so the second fiddle was done, 0.786 magically became a Fib. level.
I'll leave it there for the moment but you can see my distrust now of using Fib. levels in charting - I'll back that up later with some comments by one Author on the subject which cast doubt on them altogether..... As an aside though Scott Carney does get around this problem by highlighting that 0.786 is a derived ratio, that's why I think he is the better author.
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