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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: shag007 who wrote (768)	6/14/1999 10:43:00 PM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

FD, I uploaded an example to my server: hardrightedge.com Look how the top (arithmetic chart) shows not only a 62% fib breakdown today but also a head and shoulders breakdown. Now look at the 200 day MA and see what happens when you shift to log. The 62% breakdown becomes a 50% break with price headed to support (?) under 70 right at the 200 MA AND the top of the February move. Another very interesting phenomenon you see while shifting fibs between log and arithmetic is that support levels shift back and forth between 38/50/62. Check out that April Dip Trip reversal. 50% on the arithmetic and 38% on the log. That dip was 38% on the arithmetic of the next longer trend, the move from 10/98 to 4/99. Fibs work as fractal units: the small embedded price movements develop clear math relationships with the longer (macro) trends. Alan PS Longer trends should also be gridded by anyone using fibs to evaluate bounce areas. You can locate important support just by overlaying several different lengths and seeing where they intersect.