|
PureBytes Links
Trading Reference Links
|
Hello Dusant,
This is an excellent topic for discussion. I mainly trade FOREX and
fib levels have an almost uncanny accuracy.
A few points, for what it's worth. Wouldn't plotting the fib 0% line at
the highest high and the 100% fib line at the lowest low and then using
the traditional fib extensions, 1.61%, 2.61%, etc. produce the same
result? Might be a little easier for people to understand.
Also, do my eyes deceive me or is the scaling in your chart number 10 of
10 off a bit? As far as I can see, it is not a log chart and, for
example, the 2871 price line that you show as being the 61.8% retracement
level looks more like about 70% to me.
I know that it is not strictly Fibonacci but, in my opinion, 50% is more
widely used, and therefore more appropriate, than 48.6%. And if it's good
enough for Gann.......
Thanks again for your great contributions.
Regards,
Kevin
At 22:54 03/03/2004 +0530, you wrote:
Hi
Folks,
I would like to post a few examples of how the fibonacci projections can
help a trader to determine his trading strategy.
This chart details the test of plotting a 2
point fibonacci projection.
http://tinyurl.com/ywmbx
This chart details the plot which can be made
without the benefit of the data, which is going to come later, of which
we do not have any idea of.
http://tinyurl.com/3xdlt
This chart displays what ultimately
happened.
http://tinyurl.com/2mxhp
The idea of putting these charts here are to
illustrate, how we can project the support and resistance levels, to
anticipate when to open and close our long or short trades.
We normally plot the Fibonacci Retracements
after the fact, when the whole price play has already
happened. With this method, we can do it to anticipate the future
price levels.
The method is simple.
Point 1 is (in this case) the absolute
high.
Point 2 is (in this case) the next low.
The reverse will be true in case we try
plotting from the low.
Take a look at the charts and convince
yourself. As usual, I am open for questions.
May I add, that I cannot take credit for this
method. I only have experimented with this, and tried to arrive at a
solution.
Dusant
Chief Architect
www.candlestrength.com
Yahoo! Groups Links
To visit your group on the web, go to:
http://groups.yahoo.com/group/Metastockusers/
To unsubscribe from this group, send an email to:
Metastockusers-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the
Yahoo! Terms of Service.
Yahoo! Groups Links
To visit your group on the web, go to:http://groups.yahoo.com/group/Metastockusers/
To unsubscribe from this group, send an email to:Metastockusers-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|