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Hi,
My view of Entry points through Fib levels is a
little diferrent. In your view posted below you say that buyers buy at every
level in the hope that the market will bounce back from here (I also did this a
couple of times and lost heavily). But isnt this just plain
prediction with not much Technicals invoked. I believe that the best way to
enter into a position using fib series is to wait until the fall is
complete and buy when it crosses the last level it had broken. This gives one a
nearby Stop Loss where he could exit should the bounce back be a
mirage.
Regards
Prashanth
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Dimitris
Tsokakis
To: <A title=amibroker@xxxxxxxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: 12 June, 2004 9:27 PM
Subject: [amibroker] Fib solutions vs the
tough market decisions
Many [and potential] foreign traders preferred the TokyoSE
the last months.
After a prolonged uptrend, the big boys [not the crowd !!]
decided to apply severe pressure [C]
The index was loosing -2% or -3% or -5% without any serious
resistance.
The tough question was the magnitude of the
correction.
Fibonacci buyers failed at all known
levels.
Although my innovative research was not posted this period,
Oblique Fib traders would also fail
to catch the proper Buy level.
This failure sounds somehow descriptive now but it could
cost a lot of money, because
1. 0.382 [negative]
2. 0.500 [negative again]
3. 0.618 [the great secret for many silent traders, but,
negative again]
4. 0.786 [many traders leave "the others" buy at 0.618 and
come and buy everything at the tricky 0.786 but, the market is negative
again]
5. 1.000 [Well, there is no doubt we still have a bullish
environment, the market will react at this level, but, negative
again]
6. 1.618[the situation is serious now, buy at this level is
equivalent to a bank guarantee etc etc]
This is the most tragic case, IMO. These buyers still wait,
the market ignored their intension, the market
was not interested for the color of their money, if they
still want to buy let us take now a +2% and a +2.4%
and, if they forget these Fib stories, let them buy +5%
higher. If they do not agree, they will pay another +5%
3 days later, it is a free market, they may buy whenever
they want !!
Since it is a real story and not a
trade-fiction, I think I will never place an order at any Fib level,
horizontal
or [the new] oblique.
Dimitris Tsokakis
Check AmiBroker web page
at:<A
href="">http://www.amibroker.com/Check
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href="">http://groups.yahoo.com/group/amibroker/files/groupfaq.html
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