Mr.Tam wrote “The Da Vinci Code: Application To Stocks, Futures And Currency” markets in 2006. The numerous stock, futures and currency chart examples illustrated in this book clearly demonstrate how the Divine Proportion, phi, could effectively be used to measure time and price targets in financial markets. The Malaysian financial market including its derivatives is no exception.
To ask why markets behave in such a way, stopping at significant phi numbers of 1.618, 2.618, 0.618 and 0.382, only to either fall backor to advance further is like asking why the tail of a comet curves away from the sun in a log spiral, why pine cones, sea horses, snail shells, mollusc shells, ocean waves, ferns, animal horns, and the arrangement of seed curves on sunflowers and daisies all form log spirals, why hurricane clouds, whirlpools and galaxies of outer space swirl in log spirals, and why the human body is an embodiment of the proportions of phi – from the construction of the human DNA to body height, the proportion of limbs and the facial proportion of a perfect face.
The answer must lie in that financial markets, like all things natural, are governed by a much higher cosmic force that is so overpowering and exact that the only way to benefit from its power is to understand it and to embrace it with awe and respect.