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bobnat · 10-09-2006, 10:42

Mick,

From the high on 8/8 to the low on 8/18 there was a retracement back up to 9091 on 8/31. Think of it as an A down, a B up, and then a C down. Price is currently at the 1.272 of the value of A. The 1.618 is a fairly common extension target for Cs. Imo, ABCs are the best thing to come out of Elliot Wave.

Indeed, if this is an ABC, then we're looking at some serious upside movement.

Look at the attached chart. I think this is what you're talking about in your last post. I'm showing the 1.618 extension at 8498, not 8550. I did the math and it's the correct figure.

High 9142 - Low 8776 = 366 points

366 x 1.618 = 592 points

High of 9091 - 592 = 1.8499

Using the low at 7/17 is a valid Fib point, but so is the low of 6/29. Using the former, there isn't any confluence and the close is below the 50. That leads me to believe that this particular fib level isn't holding. In my experience, if there are two fib levels close to each other and one has confluence while th other doesn't, the better bet is on the confluence.

On top of all that, Friday showed more strength than Wed or Thursday in that it closed closer to it's low.

Nat

10-09-2006, 10:42	#19
bobnat Ain't I pretty? Join Date: Feb 2004 Posts: 710 Downloads: 1 Uploads: 0 Rep Power: 0	Re: GBPUSD Discussion Only Mick, From the high on 8/8 to the low on 8/18 there was a retracement back up to 9091 on 8/31. Think of it as an A down, a B up, and then a C down. Price is currently at the 1.272 of the value of A. The 1.618 is a fairly common extension target for Cs. Imo, ABCs are the best thing to come out of Elliot Wave. Indeed, if this is an ABC, then we're looking at some serious upside movement. Look at the attached chart. I think this is what you're talking about in your last post. I'm showing the 1.618 extension at 8498, not 8550. I did the math and it's the correct figure. High 9142 - Low 8776 = 366 points 366 x 1.618 = 592 points High of 9091 - 592 = 1.8499 Using the low at 7/17 is a valid Fib point, but so is the low of 6/29. Using the former, there isn't any confluence and the close is below the 50. That leads me to believe that this particular fib level isn't holding. In my experience, if there are two fib levels close to each other and one has confluence while th other doesn't, the better bet is on the confluence. On top of all that, Friday showed more strength than Wed or Thursday in that it closed closer to it's low. Nat Attached Thumbnails __________________ The author doesn’t endorse any of the products or services provided by unsolicited links in this post. MoneyTec may have modified this post at their discretion without the consent of the author.