Markets are Mathematical - Part Two

We will now investigate another form of mathematical computation for the markets that I am personally using extensively every day. It is always on an old computer in front of me. I can put any high and low in the proper cells and immediately know where my market is in relationship to the various retracement or expansion numbers.

I like this spreadsheet format personally. I can copy entire columns to the right so I there are as many input columns as I might want and for any market.

The only restriction is the entry of the Highs and Lows in the rows marked High or Low must be in decimal format, no fractions accepted, and I do not normally input the decimal point in the interest of speed. It is one less item to type.

The format should be self explanatory. Between the high entry and the low entry which you type in, the formulas compute the various retracement levels. In addition to this, expansion upward and downward are also computed from theses high and low inputs.

The value in terms of retracement level is outlined in the left column as are the expansion computations.

The way to check this out is to take any chart that suits you. Type in the high and low of any wave on the chart. The retracement level and or the expansions level will be found in this spreadsheet within a very small error for tolerance.

I found the trick to the Fibonacci - Elliott Wave mathematics in December of 1989. At that point my trading improved tremendously although I have had no systematic ability to produce profits until the last 4-5 years when speculating. Many reasons are behind this problem and this explanation of how one might use these spreadsheet programs is not the place for that discussion.

Initially you will find that you'll be very busy. Once familiar with the spreadsheet, trading and entering highs and lows will become second nature. You will find that you will be well rewarded by mastering the Math of the Markets.

Have great trading success in your future.

Ralph Russell

< Return to Part One - Math of the Markets