Fibonacci is an area of mathematics, technical analysts use as an analysis tool. It does not give you answers. It makes you aware of patterns and suggests probabilities. It is very similar to reading chicken entrails.
If however you are interested, I suggest the following course of action
1. Download and install FCHARTS from www.spacejock.com. It's free, enables you to get free end of day data from Yahoo, and has a fibonacci retracement tool that is easy to use.
Play with the charts to see if you can detect patterns, make a few predictions, keep them to yourself, and see how they work out. When you cannot keep silent anymore, try them out on a mate. Dont worry about getting as few wrong, entrail reading is not a precise science.
2. Spend a couple of years checking http://www.traders-talk.com/mb2/index.php?showforum=2, every chance you get. It is the "fearless forcasters" and contains the daily opinions and debates of some very intelligent and highly proficient TA practitioners.
3. Read Constance Browns book. It will send you to sleep and save you a lot of time worrying about whether your opinions hold water or not. You will find the book on Bloomberg press.
4. Use the web to research fib analysis and alternative TA techniques to supplement fib analysis, and try to broaden your horizons and get out more. You can waste an entire life on this stuff.
In the meantime here is a chart of the 2000-2002 bear market with a time expansion fib overlay
and here is a current chart with a fib overlay
see if it suggests something to you, maybe talk it over with someone else.
good luck
BRM Price at posting:
$1.06 Sentiment: None Disclosure: Held
