Ok group, here is something that I have been kicking around for some time. I am wondering if some of you have seen similar ideas floated here before. If you have, I would appreciate the advisement. Otherwise, lets see what we can do....
While day trading the S&P Futures, I leaned how closely they consistantly retrace to certain Fibonacci levels. For those of you who don't know what these are, they are essentially levels that are significant point of resistance where the price action may pull back to, and then bounce off of prior to advancing again. They are often viewed as points in which the market must pull back to in order to "catch its breath". These levels are generally at the following percentages: 23.6%, 38.2%, 50%, 61.8% 78.6%. 113%, 123.6%.
So, my multiplying the last drawn numbers, as yo can see I have correctly "calculate" 3 of the 5 numbers for the follow on drawing.
Example:
29-Aug |
7 |
16 |
17 |
25 |
33 |
28-Aug |
10 |
14 |
17 |
21 |
27 |
1 |
2 |
3 |
4 |
5 |
6 |
2 |
5 |
7 |
9 |
11 |
14 |
3 |
6 |
9 |
11 |
13 |
17 |
4 |
8 |
11 |
13 |
17 |
21 |
5 |
11 |
16 |
19 |
23 |
30 |
Now, is there refinement that needs to occure - absolutely! I look forward to your comments!