EWT and Fibs

Hi, i've posted this months ago on CV and probably most of you already have it but reposting here will make it available for all new members who wants to learn about EWT

Elliot wave
www.acrotec.com/ebooks/elliottwave_en.pdf

Fibonacci trading
www.acrotec.com/ebooks/fibonacci_en.pdf

Got to go, will look again in the morning, but thanks anyway remo.

The normal way of doing the fibs assumes that the price does not go lower than the area you took the fib reading from. If it does go lower then you have to redo your fib calculations. thats why it should be used from a known high and a known low a bit like the 123 low or 123 high.

back to my beer
remo

KI
i dont think i answered your question....dohhhh
Its not really used to forecast but it can with Elliotts waves.
example.
wave 1 moved 100 points then wave 2 retraced 40 points so now you now know roughly that wave 3 will move equal to 100 points from the bottom of wave 2 so go to 160 at least the minimum.(100% full fib extensions)assuming that wave 5 is going to be smaller as wave 3 cannot be the smallest.
so again its down to your style of trading.

its definately not looking to confirm where a price has been.
remember in the video i talk about hindsite trading in the beginning.
Fib extensions are not hindsite trading. Its used to determin resistance and supports level conventionally

i hope that makes sense
remo

Had a look a few times, i dont seem to understand whats being said. I thought a fibbo was drawn from the top and a bottom of a range....0-100 with the fibbo extension 161.8 and 261.8 as the next targets. Any chance someone can take a screen shot and point out what i am not seeing. Soz for being a bit thick about this. TIA. KI.

Hi KI
Not being a nuisance mate. Thats what these forums are meant for.

you can trade of it.
The way i do it is when it approaches a key fib level i would ether short it or go long depending on where the fib was taken from.
So for me the best area is always the 61.8 fib level but the way i trade it is different from others. I always will trade the first attempt of that fib level during market hours only if it coincides with another level of support or resistance.
It could also be used to take profits from.
If you look at that video i did carefully then look at the 61.8 area on each of the fibs extensions. It seems to struggle there. It really depends on your style of trading.
My style is if the trend is up then any retracements towards a key fib will be a level to add new longs. i always use stops and generally take profits real quickly(pay myself)
Thats the same reason i had the other day with regards to the dow. The trend is clearly up so i always go long on key areas. Until that area is broken then why go against the prevailing trend.
sorry slightly diverging
but i hope that makes sense
Its all down to your own style of trading.
I generally go against the norm.
remo