Hi Fishing&Beer,Fibonacci Ratios You Can Use in XJOIn my...

Hi Fishing&Beer,


Fibonacci Ratios You Can Use in XJO

In my previous reply, I mentioned that from a study of fibonacci ratios for the XJO, it is seen that whenever a fibonacci financial ratio is achieved between ranges or for one range with another, the chances for price forming a top pivot increases, with the majority of such pivots being actual short term tops leading to pullbacks.

I also mentioned that the closing price as at 31st May having formed a 0.707 fibonacci ratio with its previous range, and thus likely leading to a possible pivot top.


Is Fibonacci Research Finding Wrong?

However, today we saw price going slightly higher - so what gives? Is this observation terribly wrong or in error?

Checking the prices, it is found that in actual fact, the closing price formed yet another fibonacci financial ratio to its previous range, so that the fibonacci retracement of current price to most recent range is now pegged at 0.786 ( changed from 0.707)!-- which again places this price to be a possible short term pivot top as well.

Fibonacci Financial Ratios Study Results in a Nutshell

Let me now illustrate what I meant by the following chart ( with all my research results of the fibonacci ratios of previous pivots )-- you can follow the principles in this chart to continue personal research and also to get accurate pivot tops and bottoms in the XJO: ( PS. Please note - I have not marked all the actual fibonacci ratios with an arrow, but you will know which few have been missed because EVERY blue number is an actual fibonacci ratio number, so just watch their colour, ok?)



Conclusion
So the next time current price forms a fibonacci financial ratio with the previous range or a larger range, chances are likely for a possible top or bottom- it is best to watch out then!

I wish you all the best prices.

dascore

PS. Maxi48 - fibonacci is your world of expertise. Hope this chart sits well with you because I haven't displayed the entire chart of ALL the fib ratios over all the many years of the database- but only just the recent months, and that perhaps might suffice - at least for this brief explanation:)