The golden ratio and the equilibrium stock market index in Elliott wave theory

Fibonacci analysis is an extremely effective tool for understanding market movement. This monograph shows that the Golden Ratio (0.618), Fibonacci numbers, and the logistic equation can be used to predict the equlibrium value of stock price (index). Thus, the golden ratio and Fibonacci numbers / ratios can define the equilibrium stock price (index) in Elliott Wave Theory. Also, this monograph offers a practical guidance on such specific tools as Fibonacci analysis is eminently practical, showing the most effective use of a technique that can increase the probability of trading success.