DOW

updated as per Spx thread...

channel continues...

dl.dropboxusercontent.com/u/40497882/dow_channel_may29v1.JPG



cheers WS

Fibonacci is great isn't it....numbers are hotter

Yes, exactly. Thanks remo.

To put it another way: Height of wave 1 + wave 2 low = 14089 in this case.

jonamacg83 wrote: Hi Jackozy, that is great thanks, the only bit I do not understand is why the 100% was placed at 14089?

ill try and explain it
say for example you had 3 waves. 1,2,and 3.
the 100% is basically the height of wave 1 projected from the bottom of wave 2 giving a target for wave 3. so wave 3 minimum is expected to move 100% from the bottom of wave 2.
The 100% was placed automatically from the software.
thats how you project a fib. in the simplest form.

Hi Jackozy, that is great thanks, the only bit I do not understand is why the 100% was placed at 14089?

jonamacg83 wrote: Great chart and very insightful - the only question I have is why did you put the 100% mark where you have?

Hi jonamacg83,

The Fib positions are determined by the placement of the 0% level, not the 100% level. They're extensions of the 4 June 2012 to 5 Oct 2012 move, not retracements. They're used to see where possible resistances will be whereas retracement Fibs are used to look for supports.

If you don't have a Fib extension tool then use the retracement one but do it upside down from, in this case, 5 Oct 2012 down to 4 June 2012 and then move the whole Fib sequence to the Nov 2012 low and you should get the same result.

Hope that helps.