Last month ’s installment of our multi -part Tom DeMark interview ("Tom DeMark: Market Immersion," Active Trader, July 2007, p. 39) concluded with DeMark discussing his discovery of the Fibonacci time series in the 70s. Through one of his many contacts in the trading industry, DeMark heard about R.N. Elliott and found a treatise Elliott had written called "Nature ’s Law " (published by Financial World), which dealt in part with Fibonacci numbers.

Here, DeMark explains how he adapted Fibonacci concepts to his work.