Good evening Strat!Today,you named 78.6 fib level and you call it a "critical" level.You said that the price find S at 78.6% so the price keeps the direction.So is 78.6% a maximum limit till where the price could retreace? Ex:up trend-price retreaces till 78.6% fib ,where is the last level where the price could make a HL,if the price goes through 78.6%,could reach 100%>no more HL>no more up trend.Could you please explain more?Thanks.
P.S. Sorry for my "lagging" english and black background. (igmal)
As far as I know (I am just a learner) prices can retrace upto 100%/161.80% and even 261.80% but the main thing is PASR which we should be following. I just wanted to give my view but Strat and other seniors are the best people to answer and don't worry about the background I am very close to you. (simpleman)
Before we get into Fibonacci, make sure you understand the difference between a Swing move (Impulse Wave) and a retracement (Corrective Wave). This is basic trading so if you don’t understand it, do your own research.
The Fibonacci Tool can be used for 2 things:
Measurement of retracement waves
Projection of Targets
Since I prefer to let the Market take me out of my positions, I am only interested in measuring retracement waves.
Again, Fibonacci is basic trading, if you don’t understand it, there is enough information on the web to educate you.
There are many different schools of thought on validity of % retraces so what you believe and understand is up to you.
Whatever levels you believe in, they are, to a certain extent, a self fulfilling prophecy. The more traders that use them, the better and more effective they work. The big boys use them though to what extent I really don’t know.
It has long been thought and promoted by the “experts” that the 61.8% retracement is the “critical” level.
Now it is very important to understand what is meant by “critical level”. My terminology is the “last chance saloon”; this is the absolute last level that it can be a retracement.
Whatever you use as your “critical level”, understand this and understand it well – after your critical level has been breached, it is NO LONGER a retracement. It is now a TREND in the opposite direction.
My critical level is 78.6% because 1), I have proven to myself that 78.6% is more valid and important and 2), the Godfather of Fibonacci, Larry Pesavento, uses it.
You can be sorry for posting a black background (next time post a white background), but not your English. I applaud those who communicate with us when your native language is something other than English.
P.S. Sorry for my "lagging" english and black background. (igmal)
As far as I know (I am just a learner) prices can retrace upto 100%/161.80% and even 261.80% but the main thing is PASR which we should be following. I just wanted to give my view but Strat and other seniors are the best people to answer and don't worry about the background I am very close to you. (simpleman)
Before we get into Fibonacci, make sure you understand the difference between a Swing move (Impulse Wave) and a retracement (Corrective Wave). This is basic trading so if you don’t understand it, do your own research.
The Fibonacci Tool can be used for 2 things:
Measurement of retracement waves
Projection of Targets
Since I prefer to let the Market take me out of my positions, I am only interested in measuring retracement waves.
Again, Fibonacci is basic trading, if you don’t understand it, there is enough information on the web to educate you.
There are many different schools of thought on validity of % retraces so what you believe and understand is up to you.
Whatever levels you believe in, they are, to a certain extent, a self fulfilling prophecy. The more traders that use them, the better and more effective they work. The big boys use them though to what extent I really don’t know.
It has long been thought and promoted by the “experts” that the 61.8% retracement is the “critical” level.
Now it is very important to understand what is meant by “critical level”. My terminology is the “last chance saloon”; this is the absolute last level that it can be a retracement.
Whatever you use as your “critical level”, understand this and understand it well – after your critical level has been breached, it is NO LONGER a retracement. It is now a TREND in the opposite direction.
My critical level is 78.6% because 1), I have proven to myself that 78.6% is more valid and important and 2), the Godfather of Fibonacci, Larry Pesavento, uses it.
You can be sorry for posting a black background (next time post a white background), but not your English. I applaud those who communicate with us when your native language is something other than English.
15 YEARS OF PASR ON FOREX FACTORY!