Adam Hewison Introduces the Pullback Rule and Fibonacci

Dec 10, 2008: 1:51 PM CST

Adam Hewison of Market Club made available a video entitled “The Pullback Rule” or the “Rule of 50” that serves as an introductory lesson on trading concepts and Fibonacci retracements that you might find interesting.

He takes a chart from Gold at the beginning of 2008 and discusses how to apply basic Fibonacci principles to locate potential market turning points, a tactic that works across all markets.  I use Fibonacci principles frequently on the blog and I thought you might like to see a different perspective, or have a video example of how to apply these principles as discussed by Adam.

Of particular note, at the end of the video, Hewison provides a link to learn more about Fibonacci through history as well as a link to learn more about more advanced Fibonacci concepts.  That’s one reason I support the Market Club so strongly is because I feel they are genuinely dedicated to continued trader education.

Here is a portion of the text that introduces the video (reprinted with permission):

I can honestly say that 30 years ago I learned how to trade the markets in the pits of Chicago.  This one trading secret – which is over 800 years old – is one of the most monumental mathematical discoveries of all time.

The publication in 1202 of the “The Book of Calculation” was never meant to be a road map to success in the markets. However, it turned out to be an extraordinary blueprint for how modern day markets work.

The number sequences contained in this amazing 800 year old book, is like having a virtual DNA for every stock, futures and foreign exchange market.

No one knows for sure why these number sequences work – some traders believe them to be mystical, others, like myself prefer to call them one of life’s little mysteries.

My new 8 minute educational trading video that remains true to core principals of the “The Book of Calculation.” Show you step by step, exactly how you can benefit from using this trading secret.

As always, my thanks to Adam and the crew for their commitment to trader education and interaction.

Corey Rosenbloom
Afraid to Trade.com

2 Comments

2 Responses to “Adam Hewison Introduces the Pullback Rule and Fibonacci”

  1. Vasu Says:

    hI Corey :

    How does today’s high volume on USO look to you? Does it look like start of accumulation ?

  2. Corey Rosenbloom Says:

    Vasu,

    All I can say is WOW. That is most likely accumulation, yes. It looks like the day will close with a doji candle (of indecision) meaning that there was a whole lot of shares trading but not much movement – which can be characteristic of ‘hidden’ (or not so hidden) aggressive buying eating up remaining supply (selling). It could indeed mark a significant turning point – or it could be a series of large funds transacting large quantities (over 40 million!) in a single day.

    Thank you for catching that!