Analyzing stock market timing and
PhiMatrix can be used to analyze
timing and price trends in the stocks and financial markets.
The Fibonacci Series has long been used in technical analysis of the markets.
Fibonacci number relationships, however, are only approximations of the true phi
relationship of 1.618... used by PhiMatrix.
Learn more about application of Fibonacci principles to the markets at
Elliott Wave International.
Application of PhiMatrix to Stock Charts
Click and drag the PhiMatrix application to resize it so that
the corners of the grid align with major high or lows in the market.
The grid will be easier to position if you reduce the level of
Transparency option on the toolbox.
Adjust the number of vertical grid lines to seek key timing
points in the market. Set V Axis to Both to add timing lines on both sides of the midpoint.
Adjust the number of horizontal grid lines (H Lines) to seek key price
levels in the market. Set H Axis to Both to add price resistance point lines on both sides of the midpoint.
Examples of application of these techniques are below.
Dow Jones Industrial Average, January 2004 through November
Note how two key pricing lows coincide with the two primary
vertical phi lines.
Note too that the three interim highs achieved between January
2004 and November 2004 coincide with the horizontal phi lines.
Dow Jones Industrial Average, January 2002 through June
Note how the first major low in prices coincides with the vertical phi line.
Dow Jones Industrial Average, January 2000 through June
Note how the highs and lows in pricing through this period
match up with the horizontal phi lines, showing resistance points in market
Once you have identified key price and timing points, use the
grid to project potential price levels and timing points for future periods.
Legal notice: No express or implied warranties of given
in the use of this tool. The user assumes all risk for results of
decisions made. It is highly recommended that the advice of a
qualified investment advisor be obtained in making investment decisions and that other analytics and tools
are used in making any investment or trading decisions.