Welcome to the .886
You probably wound up here because
you want to know more about the now world famous '.886 Fibonacci retracement'.
Well, you've come to the right place. I'm the guy who quantified this
retracement. I published this retracement in my first book Kane Trading on:
Advanced Fibonacci Trading Concepts, although I had been discussing it for
several years before that.
The history of the development of the number is quite
interesting. I had been working a lot with Scott Carney over at Harmonic
Trader, and we had been looking at many different setups and patterns. At that
time I was spending a lot of time searching for additional Fibonacci-derived
numbers, and Scott was focusing on new potential patterns. He was showing me
many patterns that were exceeding the .786 retracement by a nominal
had recently discovered a new number, the .886. It was simply the fourth root
of phi, the .618, or 'Golden ratio'. It can also be derived by taking the
square root of the .786, which is, itself, the square root of the .618. I spent
some time looking over the charts and saw that the turning points on the
patterns Scott was showing me were, in fact, turning right on my .886
retracement. I revealed the number to Scott, and the rest is history.
I went on to blend
the number into the Kane Trading methodology, and Scott went on to develop his
Bat and deep Crab patterns. This number is likely one of the most significant
advances in technical analysis in the last ten years. I have developed many
more new Fibonacci-derived numbers and Fibonacci related techniques, always
with the emphasis on their use in actual trading. I have also laid out the
entire Kane Trading philosophy, filled with many completely new and unique
trading concepts, in a series of books.
Please visit the Kane Trading website by
either clicking Kane Trading
right here, by clicking on the home page link on the left sidebar menu, or by
clicking either of the Kane Trading logos. If you want innovation and solid
trading education, you've come to the right place.
To see further details on the
history of the .886 retracement, please see an article written by Scott on
eSignal entitled The
Origin of the 0.886 Retracement. This article lays out the history in a
manner similar to how Scott laid it out in his latest book Harmonic Trading
of the Financial Markets: Volume One.
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