Twelfth-century monk and mathematician Leonardo de Pisa (later branded as Fibonacci) uncovered a logical sequence of numbers that appears throughout nature and in great works of art. Trading strategies are employed to avoid behavioral finance biases and ensure consistent results. Trading strategies can be stress-tested under varying market conditions…

He defined the timeframe of the final five trading days of the year and the first two trading days of the following year as the dates of the rally. Rallies of 10% or more interrupted two-thirds of the 21 bear markets over that span. Adam Hayes, Ph.D., CFA, is…