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Neal Hughes
wrote:Fibs work extremely well! But in the right context. They
areamazingly accurate sometimes.
Look at this accuracy from a trade this
morning on the 1 minute mini Nasdaq. Price retraced exactly to the 38.2% level.
A 61.8% stop (plus a tick) gave a comfortable 4 point stop.
My projections look really accurate, but
they are extended from the pivot low, and not the more common pivot high of the
rally. Which brings me to a question that I have. I'm not a great user of Fib
expansions, as I use other means to exit and have never taken enough
time to test them. There are several ways to use Fib expansions that I have
seen:
1. Drawn from points A-B and projecting in
the continuing direction
2. Drawn from the high ( for a buy) of the
corrective rally
and for a total reversal,
3. Drawn from A-B and projecting in the
reverse direction to the initial move.
I've seen all these methods used at one
time or another, and wonder what other traders' experiences might have
been.
Andrew
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Attachment:
Description: "E-Mini Nasdaq 100 (Jun. 2002)- 1 minute.jpg"
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