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I understand that there's a book called "Trading Bar by Bar". I have not read that book so don't know what he says in it, but, as you say we are looking for a way to anticipate the near future. I have found that the Fibonacci tools (retracement and extension) are extremely useful in finding...

I guess the question is "who cares"? If the Fibonacci tool (qua tool) works, if its use can make you money, what more do you want? I am not interested in the metaphysical verity of any theory built on this guy's mathematics.

I'm afraid we're speaking different languages! I don't know what you mean by "ratio lines". And "zone boundaries" might be the vertical dashed lines which are just option expiration dates. Or maybe you mean something else. The horizontal lines are the percentages defined by Fibonacci and...

I don't understand the question. "Half zone offset"? I'm sorry.

To add to the preceding chart, look at what happens when we put on the retracements using the recent high and the low at the beginning of the rally in April. These nail nearly to the tick all of the swings that have occurred since then.

I hope the following chart doesn't drive you to despair but it is more challenging to work with larger time frames. That is the reason I like to work intraday. The three points that yielded the 261.8% (being high/low/high) will only give downside levels; we need a low/high/low swing to give us...

Dear Peter, I don't think the three charts were really clear. Here's another view, just the one hour chart that was on the left side of the three. I have marked the points from which the Fib extensions were drawn. I hope this is clearer, and shows where the 261% level came from.

Sprout, I can see that you have a scientific mind which wants predictability in all cases. You ask how I would know that the earnings would be bad and there would be a big sell-off at "bar 23". I can tell you that I certainly wouldn't know that (especially since I don't trade equities) but if...

I'm sorry, I think I didn't understand your question. There are in fact many ways to calculate the fibs (retracements, extensions). The values are fixed within contexts due to their fractal nature.

you're very welcome.

Vanzandt, interesting question. I looked at the chart and saw that the Fibonacci certainly did apply, though not necessarily in the last three days. I drew extensions from high/low points over the past couple of weeks and found that they were quite relevant Here's the chart:

Yes, Sprout, I will be happy to post a chart. You can notice how the 127.2%, was a support level at seven o'clock or so, (Pacific Time), then the 78%was resistance, then to the 100% for support, then 127.2% again, then the 161.8. When you have faith in this "method" you can put your orders in...

Sprout, I'm sorry I missed your question. One good way to start on the five minute chart is to find a clear high/low swing and use it as the basis for a retracement study. You would use your Fibonacci tool starting at the high in an uptrend and pulling the tool down to the low. Then you can...

There are various ways to calculate the fibs depending on which high/low swing you choose as your basis. And of course you can use either the retracements or the extensions (sometimes called projections).

MACD, thanks for the support. I did in fact write an article that appeared in The Technical Analysis of Stocks and Commodities magazine about a year and a half ago which explained my method of calculating the Fibonacci ratios.

I can guarantee that it's not just in hindsight. I put in orders in advance using the fib levels and it normally turns very nicely at the numbers I've calculated.