Applying Lucas Sequence For Optimal Stock Market Entry And Exit Points
DOI:
https://doi.org/10.48047/dct8tc58Keywords:
Stock market, Lucas Sequence, Profit and loss Strategies, Fibonacci SequenceAbstract
The Fibonacci sequence and Golden Ratio have been observed in various aspects of nature and daily life,
from the number of petals on flowers to the proportions of the human body. This study explores the application
of the Lucas sequence, a series of integers closely related to the Fibonacci sequence, to maximize stock
market profits. The Lucas sequence exhibits a consistent pattern, with the ratio between consecutive terms
converging to the Golden Ratio of 1.618. In stock market analysis, Lucas Ratios, derived from the Lucas
sequence, play a crucial role in identifying support and resistance levels and predicting asset value
retracement. By utilizing these ratios, traders can strategically position buy and sell orders and identify the
optimal entry and exit points, thereby maximizing profits and minimizing losses. This study presents two distinct
trading methodologies based on the Lucas Ratios: the Trend Reversal Lucas Strategy and the Trend
Continuous Lucas Strategy.
Downloads
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
