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Walt Downs wrote:
>
> Donald Thompson wrote:
>
> > What I'm thinking is that price will not go to the tick of a .618 ratio
> > since there are not an infinite set of numbers to accomodate the energy
> > of price. So it will settle statistically around the ratio.
> >
> > Don
>
> Don,
>
> I believe that your theory is quite correct.
>
> Simple point here though.
> If Fib ratios are all ratios, and all ratios are present all the time,
> then any ratio at any given time, is a random occurence.
>
> How do you trade it????????
>
> Walt :)
I was thinking more along the line that all ratios lead to a fib ratio
which implies that the fib ratio is an archtypical ratio.
One trades it with a 6 tick stop in the bonds. One doesn't use it with
the SnP futures since its to noisy.
One fellow I knew would find confirmation to a fib ratio out of basic EW
by determining the # of ticks or points from various EW lows for
instance. Some times it works sometimes other times it don't.
It did work for the Spx the other day. But one had to figure a
different low. than the obvious low to get it right.. An that is
interpretation and experience.
I am getting to the point of seeing that price momentum has alot to say
about the validity of whether to repect that point or not. But, then
there is is astro dimension of time.. The Saturn going retrograde on the
16th.. That was the icing to chill that rally....And it held to
N.Winski's stop parameter mentioned in his trading manual..
Still all and all its a slippery slope and I haven't mastered it yet..
I know of two traders who like to point out that just flipping a coin to
buy or sell will make you money if you know how to manage money.. I
don't have that mastery either.. :)
regards.
Don
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