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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. 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.
Back to the Future,
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