BG.

Thanks T/S and thanks for the BG chart. Geela

Geela...use the "free" pro chart first and once you've mastered that then opt for the live chart and top lists would be my advice.....you can use live charts for free but you will get timed out after a few minutes.....I'd phone them and ask for a free trial (once you subscribe to live charts, then phone them back and ask to trial L2 for a month...with their L2 you can plot it on the charts..I trialled that and it was good, but as I work full time there was no point in me having it...but worth the money if trading intraday etc.

Anything I should look for in particular as a place to get back in then?? I am a novice trader (was trading with an advice account for over a year that was mostly HORRIBLE! so got rid of it and have had a couple of trades since then on new account and really just getting back in the saddle and learning as much as I can - now know what 3 white soldiers is and looks like!thanks for that. I am looking at setting up an ADVFN account to be able to chart is that a decent site to use (seems reasonably priced per month I presume that type of charting is not available free) Thanks for any advice you have for me I really do appreciate it. Geela

It's also forming a Three White Soldiers reversal pattern today.

I'm actually long on this again now. After breaking 1050 it backtested that level and bounced so I went long. That's the advantage of selling at a resistance: if it goes through you can get back in on the backtest.

Hi Geela,

Yes, that's the correct way to calculate Fibs manually. Most chart packages have a Fib tool to do it for you.

As to whether 1058 is the temporary top and how far it may retrace from here, we can't be sure yet. I would normally look towards the 61.8% Fib for a retrace from an initial rise after a downtrend as that's the most common level. It can be more or less than this.

Once the top is confirmed by a lower high then we can plot the Fibs and look for buy signals on the short term charts (eg hourly) to check whether it looks good to enter. In my experience (and according to EWT) it's very rare for an initial retrace to be less than 50% but it's not impossible.

Good luck and keep learning!