Cable: Measuring Fibonacci From Where ?

...and if you set up the Absolute Fibonacci, you don't have to do any of this. That's not to say that this isn't all brilliant stuff, but what is happening here is that everybody is finding ways to apply the Fibonacci and how to interpret it, instead of just using the framework that the candlesticks, Elliott waves and everything else sit on anyway.

OK. I'll shut up now, before I get accused of salesmanship again! Really though, you're all giving yourselves such a hard time over this!

happy trading

thanks niceguy777, I have looked at your website, I hesitate to pay for something that there is little information about however (I mean in terms of the book, there is not an awful lot of info on what type of things are contained within it), im sure you are doing great work and anyone that can spend the time to get their work down in print has the thumbs up from me

I don't think this is giving ourselves a hard time, I am always of the opinion that learning something yourself is better than accepting someone elses interpretation. Your work may compliment the understanding being developed here of those that haven't used fibonacci before.

The question I always ask myself is "can I trade if I move to another vehicle, charting package or computer?" .. if not, then I do not understand my system, and in truth I am no better than the beginner trader, I am just following some rules given to me or squiggle pre-drawn for me on a chart, that, if they were not available, means I am back to square 1.

I would love to hear more of your insights into these methods, and you never know, might just encourage us to explore your work further

Hi Akuma99, and thanks for the feedback. The book is cheap, and we made it as concise as possible, but it's much better to get a proper handle on things than spend a whole load of time and effort here doing it badly!

I completely agree with what you are saying about learning things for yourself. LEFT Brain Trading is all about empowerment of traders to make their own decisions. What it does, is it gives you a framework for mindset and a framework for trading. Then you are in better a position to apply any knowledge or insights that you may already have. I truly believe that it is important to 'own' your information and decisions, and not follow someone else's interpretations. That way you can truly learn and build, and be independent. What ever you learn through LBT will take you further - not back to square one. It's designed to build on knowledge, not replace it.

What is contained in the book can be applied to any charts or computer. It is truly a universal framework that underlies the movements, so there is nothing peculiar about it. We also have an online group with extra files and help for those who are using LBT.
I hope this helps. Please understand, I was just joking around about giving yourselves a hard time! So many of us traders do that so much of the time. When you see the framework, though, you'll understand!

Thanks niceguy777 ... I have read your website, I will PM you with further questions, but it sounds like your line of thinking follows mine To extend on that point (and then I'll get back to the topic of this thread I promise ) .. if you do not understand the inner workings of your trading system, i.e. you can work out manually what is being displayed automatically for you, when the market's mood changes, and your system no longer works as it did (believe me it will happen), how are you able to find out what is wrong and make a change accordingly.

From observation, usually in this scenario the temptation is to add another "filter" in terms of another indicator to the chart, adding to the complexity of the system, and not really discovering what has changed. It is why an indicator dependant system doesn't appeal to me (but that is another topic all together).

Ok back to the topic, cable shows signs it's turning just shy of its 261.8 retracement, points of interest for me if it does retrace is around 1.7800 which sees the 61.8 expansion, along with round number support and the 23.6 retracement level of the latest move up.

That's one of the great features about LBT, and also, conversely, why most mechanical systems have to fail at some time or other. The characteristics of the currency movements change at different times. LBT is very visual, and you can see when this happens, as it happens, so you don't have to worry about whether or not your 'system' is going to fail and you can adapt accordingly. If you are pretty adept at it, you can sometimes even predict when it will change. You just have to watch. There's an example of this in one of the files on the online support group.

I guess the essential difference between this and the many 'systems' out there, is that this is not so much a system as a framework, so it's actually more reliable as a basis for making decisions - and you're not handing the responsibility of your decisions to a 'system' devised by someone who may have got it a bit wrong or who could not factor in the changes in characteristics of the currency movements.

Does that answer your question?

Your thinking sounds fundamentaly sound to me, I have sent you an email with some further questions.

Out of curiosity, what does your framework tell you about cable at the moment (better get back to the topic of the thread I guess)

Got the email, thanks. Nice website

On the cable, I reckon that after such an exhausting uphill journey, it's time for rest and recouperation! It won't mean much to you yet, but it's just changed down a gear on the framework, which is normally an indication of a slowdown, and it is currently 'between sets' on all charts, so under the circumstances I wouldn't trade it. Sorry to be obtuse!

thanks niceguy, and thanks for the kind word on my website. Very true the termonology of your analysis means little to me, but the message holds to my thoughts also, anyone else share the same thoughts?

You're welcome! I'm off to bed. :

Just to follow up the above I mentioned this morning, we are currently seeing a pause at that level (see below chart), not a trading signal by itself, and to be honest I would be surprised to see two small 23.6 retracements in a row send it higher ... but the USDJPY last year proved you cannot assume anything.

If it break 1.7832 and holds an aggressive trader might take it long again (78.6 retracement of the small drop current occuring ... I view the 78.6 as a point that can tell you if the trend is weakening ... a strengthening trend will stomp all over that level), otherwise a break of previous resistance could be the trigger.

If it doesnt move higher, our next two areas of support I will be watching are around 1.7780 and 1.7740 I would think.

http://img70.imageshack.us/img70/3251/gbpusd7ic.gif