is this the start of something special..., page-38

Debono

January just happened to contain a significant rally high and then a low. This fib extension was relevant as was another to your query on why a particular target was mentioned. The far chart can be filled with fibs and the lines they create have a good history of being respected.
For example; A fib extension could even be placed to the downside from the Jan high to the daily low on the 14th where there was a pause for a few days. The daily low might be more significant here as it was tested as a daily low on the 16 and 18th as well. On breaking down further again from this point (.12) to the new Jan lows those fib extensions were again well respected with the new daily low on the 22nd being exactly on the 50% ext. There were even "larger" fibs previously laid out from Aug low to Oct high that aligned with the Jan high and lows.

I place Fib extensions wherever I see a relevant high and low. A turn up after a low is in and you look to the fib retracement for for resistance areas. Conversely a turn down and you look to your fib ext for possible support areas.

As for the impact on future prices the more active traders that are focusing on a particular method the greater chance the method has of accuracy IMO (ignoring manipulation).

Closing prices were mentioned because that is how I had placed the ext's I was referring to. Generally I play around with both.

There is a danger that some of the stuff I mentioned above is my own view and not necessarily text book activity. Sorry if I was also writing in part what you may already know.


As you know, nothing is guaranteed in the financial markets and there is no magic way to determine future resistance. The tools mentioned above may give you a better idea of where to set price targets, but don't solely rely on these - they may not always work - http://www.investopedia.com/terms/f/fibonacciextensions.asp