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Kevin,
;) I've made it easier for people to do the
plotting. I have included this method on my website. So all it needs are two
mouse clicks.
Yes, using the high (in this case) and
the next low as the 0 and 100% levels, and then projecting the 161.8, 261.8 and
423.6 % projections will have exactly the same effect. We would only miss the
Square root lines the 50 or 48.6 [whichever you prefer :)] and the 78.6% which
also are significant.
That is the beauty of the Fibo series. No matter
where we start from, the percentage increase/decrease always remains steady and
consistent.
About the chart being skewed, I would have to get
back to office, and check out the chart generating engine. I will post again on
this matter.
Thank you for your kind words.
DusantChief Architect<A
href="">www.candlestrength.com
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=kevin_barry@xxxxxxxxxxxxxx
href="">Kevin
To: <A
title=Metastockusers@xxxxxxxxxxxxxxx
href="">Metastockusers@xxxxxxxxxxxxxxx
Sent: Thursday, March 04, 2004 00:55
AM
Subject: Re: [Metastockusers] Fibonacci
Projections
Hello Dusant,This is
an excellent topic for discussion. I mainly trade FOREX and fib levels
have an almost uncanny accuracy.A few points, for what it's worth.
Wouldn't plotting the fib 0% line at the highest high and the 100% fib line at
the lowest low and then using the traditional fib extensions, 1.61%, 2.61%,
etc. produce the same result? Might be a little easier for people to
understand.Also, do my eyes deceive me or is the scaling in your chart
number 10 of 10 off a bit? As far as I can see, it is not a log chart and, for
example, the 2871 price line that you show as being the 61.8% retracement
level looks more like about 70% to me.I know that it is not strictly
Fibonacci but, in my opinion, 50% is more widely used, and therefore more
appropriate, than 48.6%. And if it's good enough for Gann.......Thanks
again for your great contributions.Regards,Kevin At 22:54
03/03/2004 +0530, you wrote:
Hi Folks,I would like to post a
few examples of how the fibonacci projections can help a trader to determine
his trading strategy. This chart
details the test of plotting a 2 point fibonacci projection. <A
href="">http://tinyurl.com/ywmbx <FONT
face=verdana size=2>This chart details the plot which can be made without
the benefit of the data, which is going to come later, of which we do not
have any idea of.<A
href="">http://tinyurl.com/3xdlt <FONT
face=verdana size=2>This chart displays what ultimately
happened.<A
href="">http://tinyurl.com/2mxhp <FONT
face=verdana size=2>The idea of putting these charts here are to illustrate,
how we can project the support and resistance levels, to anticipate when to
open and close our long or short trades. <FONT
face=verdana size=2>We normally plot the Fibonacci Retracements after
the fact, when the whole price play has already happened. With this
method, we can do it to anticipate the future price
levels. The method is
simple. Point 1 is (in this
case) the absolute high.Point 2 is (in this case) the next
low. The reverse will be true in case
we try plotting from the low. <FONT face=verdana
size=2>Take a look at the charts and convince yourself. As usual, I am open
for questions. May I add, that
I cannot take credit for this method. I only have experimented with this,
and tried to arrive at a solution. <FONT face=verdana
size=2>DusantChief Architect<A
href="">www.candlestrength.com
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