Whenever a large, complex and dynamic system is composed of a critical mass of discrete elements, these elements will tend to spontaneously organize around Fibonacci ratio related structures when the system is subjected to sufficiently high levels of turbulence. The larger the mass of the system and the higher the degree of turbulence, the more precise will be the resulting Fibonacci based structures.
This relationship between complex structures, turbulence and Fibonacci ratio relationships is one of the fundamental principles of the science of complexity. Fibonacci ratio relationships have been observed structuring turbulent systems across all scales of duration (time) and extent (space). The largest scale structures that we can see which display the complex inter-dependence of turbulence and Fibonacci based structures are the spiral arms of disc galaxies. A smaller scale display of this phenomena can be seen in the Fibonacci spiral structure of the most powerful hurricanes.
Perhaps the most intriguing display of this tendency of complex, turbulence systems to spontaneously produce Fibonacci ratio based patterns can be seen in the price action of the higher volatility financial markets. Here the size of the market ( open interest and trading volume ) and the average volatility are the critical factors. The larger and more turbulent or volatile the market, the more precise are the Fibonacci ratio relationship in the resultant price action.
There is a very practical implication to these observed patterns. By defining the principle types of patterns and the key Fibonacci ratios involved the price action of a market can be predicted days, weeks and even years in advance. This phenomena was first discovered by R.N. Elliott in the 1930's as the result of an extensive analysis of stock market price action. His research was truly ground breaking and the cutting edge of science is just now today developing a theoretical understanding of why Elliott wave analysis works so well.
The technical approach of United Energy can be best described as a time cycle based fractal pattern analysis. The phrase "fractal pattern analysis" refers to the fact that we do not employ orthodox Elliott wave analysis. The price models that we use in our pattern analysis differ significantly from those used in traditional Elliott wave analysis. The nature of the adjustments that we have made to traditional Elliott analysis and the effectiveness of these modifications can be observed during our "FREE TWO WEEK TRIAL."