The Fibonacci Sequence and Cycles – Introduction
Overview & Course Objectives
The Fibonacci sequence (and relationships derived from it) are found everywhere in nature and are a central component of Elliott Wave Theory and analysis.
In a similar vein, the concept of cycles is a pervasive one, and the study of cycles (Cycle Theory) is critical to everything from social and physical science, to medicine and investing.
In this course, we’ll be taking a closer look at both of these topics, including an exploration into ways of classifying and ultimately working with cycles. Note that practical cycle work requires that the student have highly specialized software, so this course won’t delve too deeply into the topic – this is meant merely as an overview to give you familiarity with the topic.
With that in mind, by the time you reach the end of this material, you should be able to:
• Understand how the Fibonacci sequence is constructed, and be able to derive it yourself
• Understand how the key ratios are derived
• List the uses for Fibonacci numbers and their corresponding relationships in technical analysis
• Describe the basic concepts in the study of cycles
• Understand what cycle analysis adds to technical analysis
• Recognize the challenges and problems inherent in cycle analysis