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Strategies & Market Trends : Rande Is . . . HOME

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To: ~digs who wrote (15684)	11/24/1999 4:12:00 PM
From: Joe Smith	Read Replies (1) of 57584

Fibonacci refers to the golden mean or the ratio of 5 to 8. The technical theory is that gaps will fill about 3/8 on a healthy retracement. Often MM's will put in a buy limit order at that spot, hold back the asks until the gap fills the 3/8 and then their order gets filled. Sometimes it is so obvious it is obscene. Rather than believing that this mean is a natural place for gap filling, I usually look at it as a sign that the MM's are up to their tricks. You cannot beat them so you might as well join them. Look at a one-day chart of WIND from last Friday 11/19.It is obscene they way they pulled the asks out and then let it drop to 32, filled their orders and took it to 37 the next AM on a huge gap.

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