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At 05:32 PM 11/11/98 -0900, Michael Ferguson wrote:
>Gladly. This is about a 1 minute chart of today's e-mini. I put the fib tool
>on a downleg, from pivot high to pivot low, to see how the prices would
>relate to that leg as the day progressed. First upswing was big, just over
>100%. The three lines in the center of the chart are 38.2%, 50%, and 61.8%
>from either the top or the bottom. The lowest line is 161.8% of the distance
>from the first pHi to the first pLow. Following the second pHi I count at
>least seven times that price pivoted exactly on one of the fib percent
>lines.You can also see many pivots that did not turn on those lines. Notice
>how the afternoon prices pivoted from the 100% to the 50% and back down.
>Notice how the fib lines work as support until they are penetrated, and then
>they become resistance. I left the time and price labels off because the
>beauty of this, in my mind, is the geometry. Perhaps any number series would
>produce equal results, I don't know. There are many arguements concerning
>this, which is not my purpose.
Thanks! That's not how I use Fibs, but-hey, whatever works.. I talked to
a trader by phone today, he has 54 monitors in front of him, says he
"kills the S&P", he uses fibs too. Whatever works!
>I only wanted to illustrate one type of
>application of the fib series to a price chart in response to a request for
>information. The most significant thing about this is that the fib levels
>were drawn at the time the first pLow was made.
Pre-calculated support/resistance, and turning points, determined in
advance of price action, what more could we want?
>Back to the Future,
Yes! Now we're really talking Fibs! It's all about the future,
a true leading indicator.
-Neal.
-----------------
Neal on the 'net.
Trade well. Train hard.
http://www.halcyon.com/neal/
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