78.6%????????????

Reitberg · Jan 16, 2003

Where does the 78.6% retracement number come from?

It seems to have nothing to do with fibonacci numbers, and no matter how you play with the fib ratios, you do not get 78.6%.

Thanks

Tradewinds · Jan 16, 2003

78.6 is the square root of 61.8.

Reitberg · Jan 16, 2003

ahhhhh....thanks...I think that was the only thing that I didn't look at. Greatly appreciated info.

richtrader · Jan 16, 2003

Quote from Tradewinds:

78.6 is the square root of 61.8.

I think you mean 7.86 here?

Reitberg · Jan 16, 2003

Rich, you put your decimal in the wrong place. Not that it is wrong, but it is not what is usually used. Maybe your charting software puts the decimal there.

Usually the spread between a top and a bottom are charted with retracements, which have to be percentages (0.618 or 61.8%).

richtrader · Jan 16, 2003

Quote from Reitberg:

Rich, you put your decimal in the wrong place. Not that it is wrong, but it is not what is usually used. Maybe your charting software puts the decimal there.

Usually the spread between a top and a bottom are charted with retracements, which have to be percentages (0.618 or 61.8%).

Sorry, that's what I get for jumping in the middle of your thread. I was taking the square root of the whole number 61.8 without putting it into the perspective of what you were talking about.

Reitberg · Jan 16, 2003

Rich, it's ok. You're still cool with us. You can post whenever you want.

bungrider · Jan 16, 2003

BTW, 9 is the square root of 81 !!!

why don't you backtest them apples!?