I read a post on Zero Hedge highlighting an alleged Fibonacci time pattern. The chart shows a convincing countdown between the March 2009 low and an exponentially decreasing time period between market peaks.
I would expect the pattern to show up in other instruments if the observation had any merit. It’s well known that the strength or weakness of the US dollar largely drives the price movements in equity indices, especially in the S&P 500.
If it shows up in the SPX ETF, surely a similar patten would appear in EURUSD? It’s the most liquid and actively traded forex pair in the world.
A quick look at the EURUSD doesn’t give any encouragement.
I even did some cherry picking in the drawing to get the time span between trends to decrease. My original drawing counted the 128 and 97 day periods as a single group.
A lot of readers out there swear by Fibonacci price movements. I’m not sure how many subscribe to analyzing time with Fibonacci.
Do you think it’s a useful tool? Let me know what you think by leaving comments below.