clarification needed on trading with fibs

[MickMason]

Originally Posted by DaveB

Thanks a bunch Mick and Foamgod, just to be clear in a down trend begin with 0 at the low and extend upwards so highest point is at 100 and vice versa for a up trend.

Good discussion

regards,
Dave

Hi Dave, no, the opposite!

If you want to project a likely target (extension) then:

In a downtrend draw a fib line starting from the low point up to the level where the downtrend retraced to, 100.0 will be at the bottom and 0.0 will be at the top.

In an uptrend draw a fib line starting from the high point down to the level where the uptrend retraced to, 100.0 will be at the top and 0.0 will be at the bottom.

In both scenarios this will project levels (ie 161.8, 200.0, 261.8 etc) in the same direction as the existing trend and give a potential target.

Mick

[foamgod]

Whatever the trend is, just do it left to right... it will always be right. Correct Mick the fibo expert?

[MickMason]

Originally Posted by foamgod

Whatever the trend is, just do it left to right... it will always be right. Correct Mick the fibo expert?

Good morning foamgod

Me, an expert? Nah, just doing my thing and trying to earn a crust....

'Left to Right', well I guess it depends on what you're trying to do, looking for retracement levels or looking for projected targets.

Anyway, it's Friday! A long weekend ahead, lots of position squaring and profit taking before the holidays......


Mick

[foamgod]

So is Friday supposed to be good or bad, trading wise? Your opinion?

[MickMason]

Originally Posted by foamgod

So is Friday supposed to be good or bad, trading wise? Your opinion?

Neither good or bad, it's just another trading day, the only difference is it's a long weekend and after this exceptional dollar rally we've seen there may well be traders booking profits ahead of the holiday and the G8 summit next week. Just something to be aware of is all.


Mick

[foamgod]

I wouldn't call this rally "exceptional"...

[MickMason]

Originally Posted by foamgod

I wouldn't call this rally "exceptional"...

LOL, feel free to call it whatever you like

[foamgod]

You know what I mean.. when the news broke, USD crosses barely moved. It was only a long while later that it strengthens "significantly". :P