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James,
I enjoy reading your posts, keep 'em coming.
For those interested in Fibs, Joe DiNapoli has a pretty decent book for about $150 which gives lots of info about confluences and agreements. It answers the question asked above about where to draw the Fibs.
I trade Fibs also and I use a confirmation for the bounce. It consists of a close above/below the open of last two candles going in the opposite direction. If the confirming close moves too far I won't take the trade as the R-R gets skewed. I've tested this thoroughly and have been trading it for almost 6 months now. It tends to get me in later than others (DiNapoli gets in a lot sooner but will get out just as fast if price doesn't continue in his direction) but it raises my probability rate tremendously.
Nat
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