About Fibonacci Retracements
- Thread starter ess1096
- Start date
No shit Sherlock! Nothing like stating the patently obvious
From the expert on using KISS. HA
Retracements are a normal regrouping after a RUN. Think of an advancing Army that has just taken a good amount of ground as the Army advanced into enemy territory and now MUST slow the advance and let the supplies catch up to the troops on the front lines. food, ammo, rest time, Dear John letters etc. Price acts the same way, thus retraces after runs are to be expected.
I consider the 50% retraces as the GOLD standard for intraday retraces. Here is what i look for daily when i roll out of the sack..i day trade so i only play from 0930 est until close, or sooner. I trade the ORB as a starter looking for the days run. Sometimes that works like a charm and the early coffee tastes real fine. On whipsaw mornings i might low low in the weeds and wait for the first hours range breakout, still looking for the days "RUN".
Ok, lets say we get a so called one-way day, (gravy days). What you want is intraday "RUNS" and you are expecting the runs to be in 3 legs. In between each leg you EXPECT a retrace when the momentum of the run slows down and price seems to come to a stop of the RUN. Up or down, mox-nix.
Many rookie traders at this point are looking as the price losing its mo-jo as a reversal..............WRONG, WRONG WRONG. Price is just letting the supplie lines regroup and make another advance in a jif. 50% retraces, flags, a new high/low etc tells you all is fine and a price CONTINUATION is in the wroks. Now.......WHAT is so hard about trading? (money management is the answer)
KISS works...........forget the escoteric nonsense..
PS....Consider the initial "RUN" intact and VALID unless price falls below the 50% level, in that case and only then di you start looking for a reversal. UNTIL that point you must be thinking CONTINUATION. price action tells you all you ever need to know, screen time fills in the blanks. KNOW WHAT you are trading and its NORMAL characteristics.
Retracements are a normal regrouping after a RUN. Think of an advancing Army that has just taken a good amount of ground as the Army advanced into enemy territory and now MUST slow the advance and let the supplies catch up to the troops on the front lines. food, ammo, rest time, Dear John letters etc. Price acts the same way, thus retraces after runs are to be expected.
I consider the 50% retraces as the GOLD standard for intraday retraces. Here is what i look for daily when i roll out of the sack..i day trade so i only play from 0930 est until close, or sooner. I trade the ORB as a starter looking for the days run. Sometimes that works like a charm and the early coffee tastes real fine. On whipsaw mornings i might low low in the weeds and wait for the first hours range breakout, still looking for the days "RUN".
Ok, lets say we get a so called one-way day, (gravy days). What you want is intraday "RUNS" and you are expecting the runs to be in 3 legs. In between each leg you EXPECT a retrace when the momentum of the run slows down and price seems to come to a stop of the RUN. Up or down, mox-nix.
Many rookie traders at this point are looking as the price losing its mo-jo as a reversal..............WRONG, WRONG WRONG. Price is just letting the supplie lines regroup and make another advance in a jif. 50% retraces, flags, a new high/low etc tells you all is fine and a price CONTINUATION is in the wroks. Now.......WHAT is so hard about trading? (money management is the answer)
KISS works...........forget the escoteric nonsense..
PS....Consider the initial "RUN" intact and VALID unless price falls below the 50% level, in that case and only then di you start looking for a reversal. UNTIL that point you must be thinking CONTINUATION. price action tells you all you ever need to know, screen time fills in the blanks. KNOW WHAT you are trading and its NORMAL characteristics.
I agree with bighog. I use Gann with EW. Gann states that majority of trades fail at 50% level. That is why I like to see a retracement to 50%..if it is more it is a weaker trade. If it hits 50% then rockets back, obviously it is a stronger trade.
I do find time more predictive than price, but have yet to learn the more esoteric stuff. Both EW and Gann have many similarities. I think this is why they tend to be used to gether. for greater accuracy i.e. AGET.
There is a definite roadmap to a trade, i would not readjust my readings, as you need to know how far along you are in the trade.
I do find time more predictive than price, but have yet to learn the more esoteric stuff. Both EW and Gann have many similarities. I think this is why they tend to be used to gether. for greater accuracy i.e. AGET.
There is a definite roadmap to a trade, i would not readjust my readings, as you need to know how far along you are in the trade.
No I have not. A few of the Fib tools that are in my test do have time projections but currently I am not concerned with their time function.
When I start looking closely @ time functions I will also include Andrews Action Reaction lines which he used as a time projection or cycle function, but only on daily bars. I have heard that Gann was more of a timing technician than price, but have not done enough reading to verify that, perhaps someone knowledgeable in Gann can inform us.
Ok, thanks, how about Pesavento Patterns (free with Ensign)? Andrews Action Reaction, is that on the charting package you use or is it a bolt on?
Anyone use fibonacci fans/ time zones ?