Recently there has been an upsurge in the stock market. Below are some of the ways analyst use math to figure out where the market could go in the future:

Elliot Wave Theory: Uses crowd beitaly.jpghavior and financial markets follow distinct cycles and patterns

Fibonacci Ratio: The math of 1.618 prevalent in natural systems

Breakout: Following stocks as they rise beyond a well-defined trading range

Technical Analysis: Basically using patterns found in the market in the past to predict the future.


I actually feel more comfortable with the Fibionacci Ratio because there is a  lot less room to play with situations beyond your control. I got description and names of the four methods from the Wall Street Journal. Remember to never invest in where there is no long term demand and easy to replicate. If you go through a private broker look at how much you are paying per trade cause that will drive up the final price of each transaction.