Hmmmm.. But it makes no sense to go short for this asset now. If you want to short wait and find short signal first, I think. {quote}
Ignored
Agree key number to me is 101.60 78.6fib.Price already broke 61.8 hence next stop.
According to Scott Carney rule as long as 78.6 fib not violated Gartley pattern is active AB=CD
The 0.786 retracement is the square root of the 0.618. The 0.786
retracement is the next critical area to examine, after the 0.618 has been
clearly violated. The 0.786 is a vital Fibonacci number because it is often
the “last chance reversal area” before retesting the original price point. Price
action that does not reverse from the 0.786 usually will retest, and often
break past the original starting point. Therefore, 0.786 failures are
significant because the stop loss limit will be clearly defined by the original
starting point and relatively small in comparison to the potential reversal.
The 0.786 retracement is fairly unknown in the industry, although I
believe that more technicians are becoming aware of its significance. In my
opinion, it is a crucial Fibonacci number, since it is one of the last harmonic
ratios before retesting a trend’s prior high or low and it can provide a clear
indication of the future direction based upon the price action at the number.
Another reason the 0.786 is a valuable Fibonacci number is because it
can often gauge potential opportunities, especially when the surrounding
“market noise (information)” suggests that the set-up is to be avoided.
Scott Carney
Attached Image (click to enlarge)
In trading, you have to be defensive and aggressive at the same time
