EUR.USD

Hi kI

Is your fibs plotted like the brown fib on jackozy chart??
If it is I have not seen it done like that in any text.
That's not a fib retracement or extension.
I think people are talking about different things here.
The way I'm showing it is the way all text books show it.

The main thing is if it works for you great . Keep using it.
But I'll stick to my traditional way as its worked for me for years.
It's good to have a different unique way so glad your sharing .
Remo

Jackozy wrote: KI,

I've been doing some thinking and quite a bit of testing on this idea of "reverse" Fibs. Dare I say I think you may have been taught incorrectly? Please don't take offence - certainly none is intended as I'm always open to new ideas and methods which work and your stated track record is certainly extremely good. However....

Here's this EURUSD chart in close up with both your Fibs (brown) and the more traditionally drawn ones (red):

dl.dropbox.com/u/20815047/EURUSDdaily30_10_12a.gif

As you can see, the traditional Fibs are even more accurate. I also looked back at GBPUSD's 4 pull backs you mentioned yesterday and it's the same there - the traditional method is slightly more accurate.

I'll continue to test this and keep everyone updated.

The really important thing that's come out of this, though, is your observation of the importance of the 78.6% or 23.6% Fibs rather than the 38.2 and 61.8% ones so thanks for bringing this to our attention.

Jackozy, the chart you have just posted is perfect except you need to incorporate the 76.4 instead of the 78.6. You have now put a bear and bull fib on the same chart.

When applying a fib you can put one anywhere and you will find a target where something will reverse or trade up to. I do not believe i have been taught wrong, in fact quite the opposite.

When plotting a fibbo you need to trust in the method of how you use it, remember not eveything comes in 1-5 waves and A,B,C `s. Your system if required, should work through all of the timeframes.
Some of the fibbo placements that i have seen on here are so far out its untrue, so at a quick glance how do you know they are miles out ? Simple...the fib extensions run off the chart, folk need to keep things within a price range that is achievable within say 3 months.
So plotting a fibbo that gives the 161 extension as 17000 on the dow or 100% on 1.5000 EURUSD is not right.

If you are to use a long term fibbo eg monthly then use it to recognise important NO`s on the fibbo, for example i mentioned on the rocky board that the eurusd was about to bounce off of the 50% retracement on the monthly (the fibbo was taken from the year 2000) so it was a strong signal.

Also on the same monthly look where the 50% rebound went ,then turned...you guessed..the 23.6.
Now look at the monthly from the start of this year, put your 100at the bottom put your zero at the top....sorry no prizes for guessing where the price has peaked in the last 2 months yep 23.6.

KI.

FIB EXTENSIONS AND FIB RETRACEMENTS

Hi guys,

No image sorry guys but let me throw something in and i will post a chart later.
The posts form KI on fib extensions and retracements have hit a note with me.


1. The fib extension from the bottom of wave 1 is clear to see on all charts with regards to the targets of 161 (top of 3) and 261(top of 5) although doesn't always come off. Keep this on the chart!


2. When looking at historical data, put your fib retracement on the top of wave 3 to the bottom of wave-2. This will give you different targets for the retracement during wave 4. The 23fib retracement is very important here and is seems to be the first stalling point ...... there also seems to be mini waves all corresponding to roughly the same pips as the 23fib retracement on this.

This is also done from wave 2 also BUT..... the targets are very nearly the same as the fibs from the bottom of wave 1.


Cheers RMc

I can afford more time to this tonight hopefully - but I keep coming back to this fib problem, and I am wondering if there are things that I am not even aware of.

Before today - I thought this extension would have been correct. Jackozy, what is your take aswell? Remo?

I toook it from the high in May 2011 to the low in July 2012




The reason for the fib is I believe the low in July to be just that, the low. So I wanted to figure out what possible extensions we could hit. Turns out, on my extensions it has clearly fond the 38.2% on the retracement back up.

So, if that is wrong - im wondering what on earth I am doing lol

KI,

I've been doing some thinking and quite a bit of testing on this idea of "reverse" Fibs. Dare I say I think you may have been taught incorrectly? Please don't take offence - certainly none is intended as I'm always open to new ideas and methods which work and your stated track record is certainly extremely good. However....

Here's this EURUSD chart in close up with both your Fibs (brown) and the more traditionally drawn ones (red):




dl.dropbox.com/u/20815047/EURUSDdaily30_10_12a.gif

As you can see, the traditional Fibs are even more accurate. I also looked back at GBPUSD's 4 pull backs you mentioned yesterday and it's the same there - the traditional method is slightly more accurate.

I'll continue to test this and keep everyone updated.

The really important thing that's come out of this, though, is your observation of the importance of the 78.6% or 23.6% Fibs rather than the 38.2 and 61.8% ones so thanks for bringing this to our attention.

This looks interesting from the 23.6 fibbo perspective. Draw your 100 fibbo from the top of 17/10/12 down to zero at the bottom of 11/10/12 on the daily. You will see how the price has pulled back to the 23.6 and held. I think this could go on a little run. Also look at the 4 hour chart, entries dont get much better than that. I would look at the 3000 area as a take proffit. I will add to a short position also at 3000. KI.