Applications of Fibonacci numbers in economy - Elliott Wave Principle

The Elliott wave principle, as a technique for prediction of price movements, combines knowledge of Fibonacci numbers, golden ratio and crowd psychology. This method replaces price fluctuations with waves, amongst which it is finding relation to the golden ratio. In the introduction of this bachelor thesis, we are going to have a look at Fibonacci, his integer sequence and theoretical description of the Elliott wave principle. The core of this thesis is explanation of basic strategy on five-wave pattern and later, swing breakout strategy and 3-swing pattern. All of these strategies are presented on real-world examples with explanation of analogy and nuances. These strategies were explained as factual usable algorithms with clarification of all properties. Concept of algorithm for the application of breakout strategy and its flowchart is included in matching chapter. After that follows insight into problematic of spirals as a method uncovering another options for use of the golden ratio for analysing price movements