DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Dan Duchardt who wrote (6248)	1/1/2000 5:54:00 PM
From: TraderAlan	Read Replies (1) of 18137

Dan, Price has a tendency to breakout at 62% of the eventual length of the total rally. You use this knowledge to extend fibs above known breakouts (with rallies in progress) or at double/triple top areas to target the length for an impending breakout. Here is an old graphic from my site archive that illustrates this process real well: hardrightedge.com You're right on the setting points for both features. As I said, I use these kinds of gaps all the time, even on 5-min charts. The process is really triangulation, where you're overlaying two independent but related fib points. The significance is that they both extend to exactly the same level and cross-verify that point.

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