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- Last Update: 13 August 2018, 16:51
My stochastics and MACD revolve around the golden ratio.
Did you know that if you divide every other number in the Fibonacci sequence, you get Euler's exponent?
The fibonacci sequence approaches the asymptote 'e' if you take the ratio of every two numbers...
(13/5, 21/8, 34/13, etc...)
By taking the continuous integrals at this ratio, you compare the buying power to the natural rate of growth or decay in both the universe and in financial functions: 'e' (2.71828)
If the 5 day slow stochastic is above its 13 day ema, than the power of the stock is above 2.71828, or 'e'. (Buy)
If the 5 day slow stochastic is below its 13 day ema, than the power of the stock is below 2.71828, or 'e'. (Sell)
The same principle also works with the MACD, with the same ratio of 13/5.
If that helps at all, I'm happy! Good luck trading!
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