It was indeed a privilege to write the foreword for the first edition of Breakthrough Strategies for Predicting Any Market and now an even greater privilege to update it for Jeff’s new book. As a long‐term subscriber to his free
bi‐weekly Fibonacci Newsletter and his Fibonacci Forecaster updates on stocks,
commodities, and foreign exchange. I believe these are compelling viewing
for his wonderful display of charts and commentary in a format extremely
beneficial for traders and investors.
I can say now I have been a practicing Technical Analyst since 1964 and
in that time have experienced three major stock market crashes. There are
always lessons to be learned and one has to be a step ahead of the crowd. It
is much better to be able to use foresight rather than hindsight, which most
economists are not able to do. I therefore feel well qualified to pass judgment on Jeff’s latest book.
As a complete novice in 1960 making my first stock market investments
when the broker said the market was high, I was soon to find out that I had
been buying at the top of a nine‐year bull cycle.
In the wake of the 1961 credit squeeze in Australia, the stocks came tumbling down. I realized I had to find out more about markets so I enrolled
in the pilot course of the Sydney Stock Exchange at Mosman Evening college only to learn after several years that P/E ratios, earnings, and dividend
yields were meaningless if you didn’t get the timing right. Our group threw
in five shillings each to a subscription to TRENDEX, a technical newsletter
and studied Technical Analysis of Stock Trends by Edwards and Magee, which
laid my foundations for the exciting career path I have enjoyed since 1964. I
was the first Technical Analyst to be employed by an Australian stockbroker and the course was set to later move into commodities for the gold top in
1980 and later foreign exchange for the Australian Dollar.
I believe my hands‐on experience, including the three major stock market crashes, enables me to pass a sound judgment on the real value of Jeff’s
methodology and his amazing contribution to Technical Analysis. I gave the
first lectures for the Securities Institute course at the Sydney Stock Exchange
and over the decades have contributed regular articles in newspapers, newsletters, and futures magazines. Since 1998 I’ve had a regular bi‐monthly
column in Your Trading Edge.
Foreword ix
Preface xiii
Acknowledgments xix
Chapter 1 Underlying Structure of Markets 1
Chapter 2 Elliott Waves 25
Chapter 3 Rotation 45
Chapter 4 Candlesticks 67
Chapter 5 Divergences 87
Chapter 6 Volume Studies and Moving Averages 115
Chapter 7 Fibonacci Price Projections 137
Chapter 8 Advanced Projection Techniques 159
Chapter 9 Forex 201
Chapter 10 Squaring of Price and Time 215
Chapter 11 Andrews Pitchforks Crash Course 235
Chapter 12 Square of 9 247
Chapter 13 Psychology 269
Chapter 14 Market Psychology/Sentiment 307
Chapter 15 Building the Bridge 333
Chapter 16 Conclusion 375
Bibliography 389
Author’s Disclaimer 391
About the Author 393
Index 395
Underlying Structure of Markets
