Eur/usd Back to the Future Part IV

So this is my first actual step into the big boy sandbox of posting a thread and I absolutely expect to be ripped to shreds, and that is fine as when one steps into the big boy sandbox here at FF one can expect at the minimum a little sand in the eyes. . .

That being said, I have read every singled starred trading system from front to back from No brainer, to James16, to DIBS, to Mouteki, the Daily Fozzy, Super Carry Trades etc etc.....I certainly have my favorites (The BRV No-Brainer being the one I use to trade, its amazingly simple and effective plus Ironman and BRV are amazing tutors with infinite patience). Most of them use fibs in some way or another (even if just to correlate Price action). . . With regards to fibs this is where this thread begins. (And if you have some scotch nearby please drink mass quantities of it so that it makes it easier to follow along)

All trends are simply retracements of larger and longer moves that have happened allready, correct? We often look for fib correlation on moves to determine the "strength" of said fib number and how much "respect" it commands. . . . But what if we could use these "respect" lines to predict the future? Or at the very least give us a good idea of where to expect a price reaction? If you look at the pic below its a fib on the weekly of the EURUSD up move. . . . the 23.6 (Or 76.4 because I drew the damn thing upside down) sits right in the smack dab of consolidation before continuing up to the next round of consolitiation which happens to be at the next fib level. . . . I know what you are thinking, "DUH" http://i34.tinypic.com/fvcjgp.jpg

But follow along here. . . . what if once we had that first level of consolidation back between june and oct 2006 we had simply drawn a larger fib that placed the 23.6 level right in the middle of that support? We could have calculated to a rough degree the price range of when we would have a "reaction" or retracement. . . . It would be like predicting the future. . . . . That being said have a look at this. . . .http://i34.tinypic.com/23vi1pc.jpg
....Of course I could have had too much glenfiddich tonight. . . Just thought I would share

Thanks

+Lemming

So if I go back and test this out on all currency, and lets say it pans out in the weekly time frame then could we not use it on the daily? H4? H1?

It's a neat name for a thread, if nothing else

Thanks for sharing. New threads with new ideas are always welcome.

I'm a big fan of the few 'predictive' indicators we have. Fib levels, Pivot Points and trendlines. These are areas where the market will react. If I follow what you're saying correctly; are you saying IF you measure out a possible Fib retractment then you could 'know' where the next level might be encountered?

tdion,
since i've been in ff u are always making fun of people......oh well maybe u that's ur job in ff. lemmingboiv2....nice post i'm also a big fan of BRV, it's good to see u advance in ur tots...nice plan.But know that forex is sometimes not predictive. although price action always lead the way.thanks

Oh totally I absolutely agree I cannot predict the future. . . I was thinking more as a confirmation tool of intraday S&R