Monarch,
Very interesting Fibo lessons. Thanks for taking the time to explain your methodology.
Very interesting Fibo lessons. Thanks for taking the time to explain your methodology.
Disliked
I only mention Fibo extensions to give credence to the completion of a Fibo Setup that is currently running its cycle.
This may or may not be a proper technique, but it is one I am working on at the moment trying to perfect my strategy.
It also allows me to see the forward projection of a movement, but not until there is a completion of the present setup.
It is actually the opposite of what has happened, but it is the same principle used in Fibo Retracements that has taken place.
If the market is working in a channel such as we have been in since the nice Bull run up, then we must follow every move it has taken, but at the same time project where it is going.
Just a sample, I would say this week would be Bearish, because last week was Bullish.
I wait for the Fibo Completion which was 1.9702, and start a calculaton if it is High of the Fibo setup, or an extension to the High of the Fibo setup.
Then I will project from there the opposite direction that it came from.
I use many calculations of past Fibo's and supports/resistance, and I tend to favor the 50% range rather than maximizing a move at 61.8%.
The whole purpose is to be prepared when such a move comes at you, then you can set back, and just know that this was where it was going to go, but maybe not exactly at the point we feel it should have done it.
I thought 1.9645-50 was the High we were going to reach this week, but it extended past, I mapped the High at 1.9667, and then we had an past our High to 1.9702 a 61.8% increase over the High.
Usually when the market turns in a direction, it will not happen on a dime, it must have room to expand or breath before a retracement.
This allows me to see if we have breached the Upward Fibo 61.8% at 1.9622 from the previous Bull Run retracement, and it will also reveal if were in a upward trend or downward trend for the Short Term and Long Term.
My projection (my own projection only) would be to expect a few more ranges before the acutal move for the year.
Downward now, one more upwards, then one more downwards.
From there I would expect the price to go back up past to our High at 1.9846, or past the 1.9900 area. This would be on the Monthly - 1.9846 would be a Double Top, above the 1.9900 would reveal continual increase.
Just my 2 cents worth, sorry such a long of a book folks.Ignored
Trade what you see - Not what you think