Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
DislikedI am waiting for the Close of this Hour for the downward projections.
This is what I have for now.
The High was 1.9667 before the jump to 1.9702 which is 35 pips.
My Last Break Line was 1.9606 going into this setup.
The High went to 1.9667 which completed my upward movement Fibo extension, price stayed at 1.9667 for sometime, then jumped to 1.9702 today.
My Fibo Extension Calculations are as follows:
1.9667 61.8% Fib Extension (- minus) 1.9606 50% Fibo Extension = 61 pips.
61.8% of 61 pips = 38 pips.
Add 38 to 1.9667 (The Completed 61.8% Fibo Extension) = 1.9705
1.9705 would be the 61.8% Fibo Extension of the Upward Movement completed from the Low 1.9315 to the High 1.9667.
1.9622 Should act as a Resistance if the Upwards movement has completed.
Watch for a Break at 1.9606 (closed candle) before we see a Downward indication on the Hourly.Ignored
DislikedIf I understood you correctly your Fib calculation came from the daily chart projecting from November 17 to November 24 establishing the extenssion of 50% and 61.8% for 1.9606 and 1.9667 (my chart is below). Is that correct? Looks to me that it is.
I have a couple of questions:
1. Why did you measure that particular zone in November rather than any other swing? This seesm to meaqsure the swing in a middle of progress.
2. Why do you pay attention to this zone after 2 month of trading? Is it a case that there were some other condidions that reestablished those lines?
3. Does extenssions paya more significant tole in your analysis than retracement or/and fib projections(expanssions, swing projections)
Disliked50 Fib retracement of the up move is 1.9485. 1.95 may also be a good target as it's a nice round number.Ignored
DislikedI hope this will answer your question.
I guess I never really read to much or have anyone explain this to me, but what I do with the Fibo's is this.
I will subdivided each movement on each time frame.
Such as the chart you posted, the Fibo's before had all been completed, and therefore, I started a new Fibo Setup from what I thought was the completion of the previous setup. This takes tremendous time and study of each time frame.
Now we reached a High at 1.9846. This would be the perfect point for anyone to have begun a Fibo study. If you look at where the price has gone since that High, you can pretty much figure where the Fibo setup started.
You could look back on the Daily and see every move up had a retracement of 50% minimum, this would be a process of elimination. Nov 17th, 2006 was the last low that had not completed a 50% retracement until the low at 1.9620. We came within 40 pips of completing a 61.8% Fibo retracement.
I was expecting this drop last week, before the rise upwards.
Now we can see we have made a complete cycle of the Long Term Fibo Setup.
I am now working a 1 Hour Fibo Setup, since I know that we are in a Long Term cycle.
There you go, hard to explain somethings.Ignored
DislikedI prefer to KISS (Keep It Simple, Stupid). I look for swing reversals on the 4 hour charts. Today's rejection of the down trend line signals a swing reversal has started. Target is at least the 50 Fib of the move up.Ignored
I do understand your approach. I just do not understand your reasoning for that extenssion calculation zone from November 17 for the reason why November 24 was chosen and and why those extenssion lines played any role in your day trading today?
Extenssions to me are a lot less significant than retracements and swing projections.
It is working for you and it is great. I just cannot see the essence of your calculation since this is the first time you mentioned the extenssion lines