International Journal of Applied Science and Technology

ISSN 2221-0997 (Print), 2221-1004 (Online) 10.30845/ijast

Fibonacci Retracement and Elliot Waves to Predict Stock Market Prices: Evidence from Amman Stock Exchange Market
Dr. Mohammad. Alalaya, Dr. Mohammad. A. Almahameed

In this paper we have tried to give an explanation of Fibonacci retracement and Elliot wave theory, and then we have included the applied of the theory and its application to ASE prices, as evidence of Fibonacci numbers, and application of Elliot waves in order to have the good time to buy or sell for the shares and stocks in market. Fibonacci sequences have been a topic for mathematical researchers and studies for a long time. The functionality of this analysis is to determine whether this proposed method between Fibonacci retracement and Elliot waves theory which validated in simulation methods, which can help to have the more efficient prediction of trends of ASE.Results of this paper shows, when the investor in ASE can buy-or – hold, also it shows on conclusive evidence of significant analysis through this method levels trading strategy, as a result of the study the investors can be performed the path of ASE for future shareholders expectations which reflects after accounting to transaction cost and risk. This study focused on the pattern recognition in time series of ASE with experimental simulations, to consecrate the purpose of the study that will be presenting the trends. Therefore results of this study do not reject the effect prices but support it in dealing with buying or hold.

Full Text: PDF