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[amibroker] Oblique Fib Lines and the historical support



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DT:
 
You say that "... oblique lines offer a more realistic 
approach to Fib relations ... Fib lines should not be static, if they express 
any psychological reactions, they should follow the trend."  It is not 
obvious to me that either statement describes the reality.  As Ara notes, 
the crowd controls and Fibonacci and Gann retracement targets are often 
found to be important.  It is hard to imagine that the crowd 
can keep track of trends in their collective head with sufficient accuracy, 
as opposed to a relatively simple pivot level.  Beyond that, it has been 
argued that retracements from pivots are consistent with the "natural order of 
things" as expressed by the Fibonacci series and logarithmic growth.  Given 
this to utilize a trend versus a pivot one would have to figure 
out how successful pivotal retracement techniques can morph into a 
retracement that follows a trend and converges with pivotal 
targets.  If that is true, it will certainly take a significant effort to 
verify.
 
Bill
<BLOCKQUOTE 
>
  --- In <A 
  href="">amibroker@xxxxxxxxxxxxxxx, 
  "DIMITRIS TSOKAKIS" <TSOKAKIS@x...> 
  wrote:--- In <A 
  href="">amibroker@xxxxxxxxxxxxxxx, "Ara 
  Kaloustian" <ara1@x...> wrote:> 
  Dimitri,> > This is a rather ingenious piece of creativity.... 
  in considering the oblique fibs...> > This is the first time 
  I have heard of them...> > Wondering if this is your creation or 
  is there a following to this theory / technique.I have had a 
  discussion this morning about Fib lines.My opinion was that the oblique 
  lines would offer a more realistic approach to Fib relations [if 
  any].Fib lines should not be static, if they express any psychological 
  reactions, they should follow the trend.In the usual approach we 
  decide one sunny morning, for the next 20, 30 or more bars, that the 
  "target" is , say, a 38% of the recent trend. This is static and, in 
  technical terms, makes an unrealistic assumption :the support line is 
  horizontal. We all know it is not true. The "targets" should change 
  according to the evolution of the market.The first, crude 
  approximation was to keep the linear character of these lines and assign 
  to them the slope of the recent market action.Some next step would be to 
  replace the straight lines with curves, something similar to sigma bands 
  etc.This is the main concept, the rest is AFL.Dimitris Tsokakis
  > Reason I ask is that I have seen the 
  static fibs work very well ... and even though it make clear sense 
  that the oblique one should be better, these things work on "herd 
  mentality" ... so wondering how much of a herd there is ....> 
  > Have you been using this for some time?> > 
  Kalinychta> > Ara


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