Fibonacci Ratios with Pattern Recognition by Larry Pesavento is a classic trading guide that bridges the ancient mathematical elegance of Fibonacci ratios with the practical art of technical analysis. Written by a seasoned trader and educator, this book equips readers with a comprehensive framework to identify high-probability trading opportunities through harmonic ratios, geometric price patterns, and classical technical setups.
Pesavento introduces traders to the natural order behind market movements, showing how cycles, ratios, and geometric structures align to forecast turning points. The book emphasizes the AB=CD pattern, the Butterfly formation, and other harmonic price structures, which are still widely applied in modern trading rooms. By combining Fibonacci retracements, extensions, and proportions with pattern recognition, Pesavento delivers a rule-based method for anticipating market reversals and continuations with precision.
More than theory, the book provides practical entry techniques, step-by-step examples, and appendices that include trade planning sheets, portfolio management tools, and a record of real trades. It is a resource for traders who want to elevate their chart reading from simple support-and-resistance to a structured, mathematical approach grounded in market geometry.
✅ What You’ll Learn:
- The core principles of Fibonacci ratios and how they reveal hidden structures in price charts.
- How to identify and trade harmonic patterns like the AB=CD, Butterfly, and other geometric setups.
- The role of vibratory and harmonic numbers in market cycles and timing.
- How to integrate classical chart patterns with Fibonacci analysis for greater accuracy.
- Practical entry and exit techniques, including confirmation signals such as candlestick patterns.
- Portfolio management strategies and the use of trade planning sheets to track consistency.
- How to apply Fibonacci and pattern recognition across markets including stocks, commodities, and futures.
💡 Key Benefits:
- Master a proven trading methodology rooted in Fibonacci mathematics.
- Enhance your pattern recognition skills to spot high-probability setups.
- Combine Western charting techniques with harmonic analysis for precision trading.
- Gain access to practical tools and trade records directly from a professional trader.
- Improve risk management and trade planning with structured worksheets.
- Learn timeless strategies that remain effective in modern markets.
👤 Who This Book Is For:
This book is designed for:
- Technical traders eager to integrate Fibonacci analysis with pattern recognition.
- Day traders and swing traders looking for precise reversal and continuation signals.
- Students of market geometry and cycles who want a rule-based approach.
- Experienced traders seeking advanced harmonic trading techniques.
📚 Table of Contents:
- Introduction
- Clues from the Cosmos
- Harmonic and Vibratory Numbers
- Geometric Characteristics of a Price Chart
- The Primary Patterns
- Classical Chart Patterns Using Ratios and Proportion
- The “Butterfly” Pattern
- The Opening Price
- Entry Techniques
- Appendices
- Additional Readings