Under the counter

Magic numbersBad news emerged last week for the more superstitious members of the trading community, as two academics at London's Cass business school publish research apparently proving that there is no truth behind the theory of market reversals at levels indicated by Fibonacci ratios. This, if correct, would debunk such favourites of the day trading community as Elliott Wave theory, though why getting someone called Elliott to wave at things would help you trade is a mystery to me - the only Elliott I know is a right miserable so-and-so. Anyway, professor Roy Batchelor stikes fear into the hearts of desperate Locals everywhere when he blankly states that "the Fibonacci rule is just an illusion". He does at least seem to empathise with the poor traders, saying that they "are under added pressure to rationalise their actions and display expertise". He's got a point there, naturally: nowadays it doesn't seem...