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At 08:53 PM 12/9/99 -0600, eric s adair wrote:
>i did this with my calculator so please let me know if i did it correct. i
>am cheap when i comes to trying new ideas. haha
>
>qcom last week with 406.25 as the high and one support line at 330
>
>lets not worry about which numbers i picked but the percents in accordance
>with the two numbers.
>
>0.0%=406
>23.6%=388
>38.2%=377
>50.0%=368
>61.8%=359
>100.0%=330
>161.8%=283
>261.8%=207
>423.6%=84
>
>i imagine that it would have been easier to use excel but i still miss dos
>and lotus (sniff)
>
>thanks in advance for your help. if you want you can simple email me
>directly, i am not sure this is for listerserver debate.
>
>thanks
>
>eric s adair
Eric,
Fibonacci is my passion.. Actually, it's just one of them, luckily I'm
able to pursue them lately.. There's nothing like using a leading
indicator to boost your performance.. But it's a bit more complex
than the usual mechanical system..
You don't really need elaborate tools or programs, unless you
are in the fast-paced intraday world.. Nothing wrong with using
a calculator on a monthly, weekly or even daily chart. Just some
firm rules, a clear brain, and some human intelligence..
The important issue with leading indicators is to use them in
the correct context.. We could define Fib levels to the upside
as well as downside.. So it's important to have a good trend
definition.. Looking at the trend on the daily chart, I'd want to be shorting
intraday generally. Looking at the trend of the weekly chart, I'd want to
going long at a fib retracement on the daily chart... In addition, I use
particular patterns which predict a change of trend before price shows
a new direction.. There was a really good one on 11/15/99 (daily chart),
predicting an intraday downtrend for several days, while all the usual
indicators showed an uptrend.. So using that pattern I'd be selling short,
before all the "trailing stop", "moving average crossover", and
"stochastic/MACD" traders hit their panic buttons.
I don't know what your trading time-frame is, so can't answer your question
directly..
Also, I don't use all the fib ratios you use above, just the most
consistent ones.. I apply just a few of those, but combine the fibnode
levels from multiple time frames to find the optimum entry points, stop-loss
points, and profit objectives. Using all the ratios above adds more confusion,
so it's better to ignore the "flaky" ones..
Soooo.. This is a bit complex.. If you want to discuss in detail, send me
private email, we can go over the chart.
Best wishes,
-Neal.
-----------------
Neal on the 'net.
Trade well. Train hard.
http://www.halcyon.com/neal/
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