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Welcome to the .886 retracement homepage!

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 amount.
I 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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