xjo chart - fib help?, page-4

Gann reckons fibs don't work.

Crikey, I suppose the 1987 crash retracement of the All Ordinaries Index to exactly 61.8% (1150) was a complete fluke, eh Gann?

And the subsequent top in 2001, which by mere co-incidence came in at exactly the 1.618% extension on the 1987 crash range? Another one?

And where will 2.618% , and the next major correction be? I'll leave it up to you. Hint it isnt here, but this area is a fib significant resistance on the way up , hence the consolidation.

For Juicy:

The XAO is easier to chart using fib - mainly because the XJO was only introduced in April 2000 and doesn't contain the appropriate historical bases. But contrary to what Gann has offered (Dow related and still incorrect) fib does work on the XJO.

If you put the base at the October '05 lows you get a lovely direct hit confirmation and bounce on 08 Feb for 23.6% (works for both XAO and XJO).

Take the base back to May and there are some confirmations as well that can be used in this consolidation.

If you are really adventurous , do some extensions from 1987 and you shouldn't be disappointed.