Application To Stocks, Futures And Currency

Sifu Fred 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.

The Da Vinci Code, The Novel

The Da Vinci Codeis a novel written by American author Dan Brown and published in 2003 by Doubleday Fiction (ISBN 0385504209). It is a worldwide bestseller with sales of more than 40 million copies (as of March 2006) and has been translatedinto 44 languages.

Combining the detective, thriller and conspiracytheory genres, the book is part two of a trilogy that started with Brown’s 2000 novel Angels and Demons, which introduced the character Robert Langdon. In November 2004, Random House published a “Special Illustrated Edition”, with 160 illustrations interspersed with the text.

The plot of the novel involves a conspiracy by the Catholic Church to cover up the “true” story of Jesus. The Vatican knows it is living a lie but does so to keep itself in power. The novel has helped generate popular interest inspeculation concerning the Holy Grail legend and the role of Mary Magdalene in the history of Christianity.

The novel concerns the attempts of Robert Langdon, Professor of “Religious Symbology” at Harvard University, to solve the murder of renowned curator Jacques Saunière of the Louvre Museum in Paris. The title of the novel refers, among other things, to the fact that Saunière’s body is found inside the Louvre naked and posed like Leonardo Da Vinci’s
famous drawing, the Vitruvian Man, with a cryptic message written beside his body and a Pentagram drawn on his stomach in his own blood.

The interpretation of hidden messages inside Leonardo’s famous works, including the Mona Lisaand The Last Supper, figure prominently in the solution to the mystery. The main conflict in the novel revolves around the solution to two mysteries:

1. What secret was Saunière protecting that led to his murder?
2. Who was the mastermind behind his murder?

The novel has several concurrent storylines that follow different characters. Eventually all the storylines are brought together and resolved at the end of the book. The unraveling of the mystery requires the solution to a series of brain-teasers, including anagrams and number puzzles. The solution itself is found to be intimately connected with
the possible location of the Holy Grail and to a mysterious society called the Priory of Sion, as well as to the Knights Templar. The Catholic organization “Opus Dei”(a caricature of the real Opus Dei) also figures prominently in the plot. Fans have lauded the book as creative, action-packed and thought-provoking. Critics have attacked it as inaccurate and poorly written, and decry the many negative implications about the Catholic Church.

The Da Vinci Code: Application to Stocks, Futures and Currency Markets

This book will attempt to show the application ofthe Da Vinci Code to financial markets by relating some interesting questions to the contents of Dan Brown’s famous book, namely:

1. What has a stock, futures or currency market’s movement in common with the way Saunière’s body was found inside the Louvre – naked and posed like Leonardo Da Vinci’s famous drawing, the Vitruvian Man, with a cryptic message written beside his body and a Pentagram drawn on his stomach in his own blood?

2. What has a stock, futures or currency market’s movement in common with Leonardo’s famous works, including the Mona Lisa and The Last Supper which Saunière had an obsession with?

3. What has a stock, futures or currency market’s movement in common with the following cryptic numeric cipher and two anagrams scribbled onto the parquet floor with a black-light pen by the dying curator?

CHAPTER 1: PHI AND THE DIVINE PROPORTION

• What is Phi and the Divine Proportion
• The Golden Section, Golden Ratio and the Golden Mean
• The Golden Rectangle
• The Golden Spiral
• Logarithmic spiral
• Who discovered Phi?
• The Egyptians
• Squaring of the Circle
• Pythagoras
• Phidias
• Euclid
• Leonardo Da Fibonacci
• The Rabbit Problem
• The Honeybees Problem
• Leonardo Da Vinci
• The Vitruvian Man
• Leonardo Da Vinci’s Method for Squaring of the Circle
• THE MONA LISA
• THE LAST SUPPER
• Johannes Kepler
• The term “Phi” was not used until the 1900’s

CHAPTER 2: THE MOST BEAUTIFUL NUMBER IN THE UNIVERSE

• Why is Phi the Most Beautiful Number in the Universe
• PHI, Acoustics & Music
• Using phi in sound studio design
• Phi in Music
• Mozart’s Music
• Beethoven’s Fifth Symphony
• Phi And Architecture
• California Polytechnic State University
• The Partenon, Greece
• Le Corbussier
• PHI and NATURE
• FIBONACCI NUMBERS AND FLOWER PATTERNS
• PHI AND ART
• Leonardo Da Vinci’s Saint Jerome
• Holy Family by Michelangelo
• Crucifixion by Raphael
• Self-portrait by Rembrandt
• The sacrament of the Last Supper by Salvador Dali
•  Bathers by Seurat
• Composition with Gray and Light Brown by Piet Mondrian
• Phi and Poetry
• Phi and Beauty
• The human face is based entirely on Phi
• Phi and the human hand
• Phi and human growth and development
• PHI AND CREDIT CARDS
• MORE EXAMPLES OF THE DIVINE PROPORTION

CHAPTER 3: PHI AND THE FINANCIAL MARKETS

• INTRODUCTION
• The Elliott Wave Theory
• BASIC TENETS OF THE WAVE PRINCIPLE
• HOW DO YOU APPLY ELLIOTT WAVE & FIBONACCI NUMBERS TO TRADE THE MARKETS
• The Fibonacci numbers as part of the wave principle
• BASIC RETRACEMENTS USING THE TWO MAJOR RATIOS 0.382 & 0.618

CHAPTER 4: ELLIOTT WAVE THEORY

• The Basic Pattern – Motive Wave Or ” friendly wave“
• Motive Wave
• Impulse Waves
• Extension
• Truncation (Wave 5 failure)
• Diagonal Triangle

CHAPTER 5: MARKET CORRECTION

• Corrective Waves
• Zigzag
• Flat
• Flat 3-3-5
• Triangles
• WXY or Combination
• Rule of Alternation
• Retracement of Extension

CHAPTER 6: WAVE CHARACTERISTICS

• WAVE 1
• WAVE 2
• WAVE 3
• WAVE 4
• WAVE 5
• WAVE A
• WAVE B
• WAVE C

CHAPTER 7: MORE FIBONACCI EXAMPLES

• FIBONACCI AND ELLIOTT WAVE COUNT AS APPLIED TO
  THE MALAYSIAN STOCK MARKET & INTERNATIONAL FINANCIAL MARKETS

CHAPTER 8: CONCLUSION

• CONCLUSION

Appendix 1: Phi and Mathematics
Appendix 2: The Pentagram
Appendix 3: Leonardo Fibonacci
Appendix 4: The Platonic Solids
Appendix 5: Marcus Vitruvius
Appendix 6 : Desiderata
Bibliography
F-1 Trader Course materials