wotther, Yes, I often “play game� with 0.618 (Fibonacci...

wotther,

Yes, I often “play game� with 0.618 (Fibonacci Ratios).

On 19/12 FMG low was $5.84 (A), then last Friday (28/12) jumped to $8.75 (B). So I started testing “0.618 game� to find retrace point, as below :

[8.75 - 0.618(8.75 - 5.84)] = $6.95

Today, FMG low @ $6.90, 5c different! I didn’t put my buying order @ $6.95, so I missed out a chance to get few $ profit. It closed @ $7.50. But looking at charts, I think FMG will be down one more day, may be to $6.50 or $6.51.

You read my post on 16/11, I started playing “0.618 game� with RAU, plus by looking at charts, I have guessed Rau would be down to 12c and 8.2c. Its was down to 8.1c (low) on 27/12! So, I keep “playing game� with Fibonacci ratios to help me in trading shares.

There are many books about Fibonacci ratios or use Google search to find them.

Example, to find retrace point(s), you work out the difference between Low (A) and High (B), then multiply by 0.618 (or by 0.2352, 0.3819, 0.50, 0.70, etc …). Minus that result from B (High). To find up trend point(s), do the same but add result to the “Low �.

With FDL,I think it may retrace to 9.9c or 9.3c very soon.

Few websites on google:

http://www.hubb.com.au/datalink/pgtemplate.asp?nav=articles&articles=fib

http://www.investopedia.com/ask/answers/05/FibonacciRetracement.asp

http://www.trendsoft.com/tasc/fibonacci.htm

http://en.wikipedia.org/wiki/Fibonacci_number

Good luck and Happy New Year To All