By the middle 1960s, Ney had successfully transitioned himself into a career as an investment counselor. Initially he joined a Beverly Hills stockbroking firm, prior to launching a newsletter, The Ney Report, which had among its subscribers, J. Paul Getty. Ney wrote three highly critical books about Wall Street, asserting that the market was manipulated by market makers to the detriment of the average investor. The first of these, The Wall Street Jungle, was a New York Times bestseller in 1970. The second and third were The Wall Street Gang and Making It in the Market. Ney was credited with saying, "Hidden behind the facade of pompous jargon and noble affections, there is more sheer larceny per square foot on the floor of the New York Stock Exchange than any place else in the world." IN HIS BOOKS NEY TALKS ABOUT THE GEOMETRY THAT IS USED.
That is why I use the approach that I do. Also my brother who is rich from the market uses similar ideas.
Well, that's as much time as I want to spend on it. I used internal trends, circle ratios, acceleration rates and everything was backtested. These angles and ratios will show up again because the stock market runs on a GEOMETRIC system. Read Richard Ney to find out about this.
Watch for the doubling of the arc distance. 2 to 2.2 and 4.1 to 4.25. The overall size of the fib has to be sized to fit those ratios and match the data. Once set they will repeat. The sequence should actually be 1,2 3 which is a fibonacci sequence.
What I did was started on 2, 4, 6. If the chart was scaled perfectly 2, 4, 6 or 1, 2, 3 would probably work, but the ellipses are hard to make into perfect circles, (the scale doesn't set perfectly), so I get a slightly elliptical shape which is why I use the double bands. It also seems like there are times when it touches 2, then the swing on the arc gives 2.2 just slightly larger.
If you are wondering about the angles. They used to be 15,30,45,60 and 75 with a shallow 5 degree . Richard Ney had a book and mentioned them. He used to work on the floor of the NYSE for specialists. Don't know if they still work. The chart also has to be scaled properly for them to work. I just go with the angles that are on the chart. Look for repeating angles. They always repeat, and it isn't just the fastest speeds. In fact I posted one chart in "ideas" that shows grids running at consistant spacing and continuous angles. I don't use it though. Just too confusing...but it happens.
That should help.