Fibonacci GONE WILD

I hate to say it, but one can easily equate fibonacci retracements to something called "profit taking" this kind of forex analysis, while fun, does not hold much weight IMO.

Well, I've seen enough action in regards to fibonacci to know that they are worth using. Same with pitchforks, moving averages, and pivot points. They all have their day in the sun at some point. If you expect any of them to work 100% of the time then you are dreaming.

While the above chart for the hourly usd/jpy looks promising, I've found a larger setup in which price action is responding to very well. I actually already had it on my chart but I had hidden it a few weeks ago and forgot about it. Therefore I've decided to lay the above to rest.

How do you make the white fibbo? Based on what and how do you draw it? I mean without any high and low . Its imaginary lines or something?

It's just a copy of the lower fibo. Make a copy and line the bottom line of the copy with the tiop of the original fo upward movement. Vice versa for downward.

They are merely extension levels. You can just add them into your fib parameters with the usual 138%, 161%, and 261%. I just use an entirely new fib set for my extensions. Don't ask me why.

Here is an example using the hourly eur/gbp. The first chart shows just the original fibs and the second one with the extensions added below it.

(By the way, this was a nice break out of the pitchfork to the upside that is currently helping the euro in recovering faster than the pound.)

Once the pitchfork was broken, it was up and away!!

From the EUR/JPY Analysis thread:

http://www.forexfactory.com/showpost...1&postcount=24

Taking into account the two charts in the previous two posts.....hmmmmm??? I wonder.....

well...Thanks for explaining. I really appreciate! Another question arise is ... I tried in MT4 couldnt reach to this extent. I mean the mirror image couldnt be made. Can you tell me which software you use for charts?

I use FXSolution's Accucharts as my charting software.

Here is how the EUR/GBP and EUR/JPY turned out on those hourly charts I posted. I've added extra fib lines since then.

Good support was found at the 123% fib.

It has been 14 weeks since price has closed above the 161% fib line. A weekly close above this line would be a good indication that price might push much higher. A strong break of the ascending trendline could send price down to retest the blue 50% fib line if support is not found at the pitchfork or 38% fib line.

short scenario

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Where do you expect the retracement to go? Now it's at 1.5635.

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Although there is more to this chart, I wanted to show the resistance price is facing.

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I have a feeling...

21ema - White
200ema - Red