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

To: Matthew L. Jones who wrote (6210)	12/27/1999 6:23:00 PM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Matt, <How close would you typically look for a Fib retracement to get to the actual number?> It's always best to look for the obvious price magnet/spring in the vicinity of a retracement, rather than the retracement itself. There is often a moving average, support/resistance line, band or other "object" that price needs to print to complete the reversal. Often price stretches right across a key fib to that number and V-reverses right back through it. Hence the magnet/spring analogy. Alan

To: Matthew L. Jones who wrote (6210)	12/27/1999 9:36:00 PM
From: OZ	Respond to of 18137

Matt, You might also pull some Fib. lines in different time frames. For example, The 62% pull back on the daily, may be equal to the 50% on the 15min. and equal to the 38% on the 5min.. This convergence of multiple time frames and various fib points greatly increases probable support and resistance. OZ

To: Matthew L. Jones who wrote (6210)	12/27/1999 9:51:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 18137

1. Depends on time frames you are trading. In a previous post, I gave settings to use in Qcharts for a 5 min chart starting at last hour low to first hour high. In it, I tried to suggest a healthy retracement would only return to the 38% to 50% level normally. Now when it turns around I suggest you wait for morning high to buy back then you should expect 133 - 166% of last hour low as a target. A real move will go to 263% of low. So I don't restart count. 2. You "give it room". It is better than being in the dark. especially when you are in virgin territory. You want to buy when trend is in place. The 38% level might mark a bottom, but like all bottoms you have to have a means of determining when they are.Up to you, how much risk you take. You might use a 3higher highs and lows to convince you trend has turned. 3. Only smart people use them. So not wide spread. 4. Fib extentions can be used for targets. They require a 3 point setup. The better programs give you Fib extentions, retracements and time periods. E-wave is based on Fibonacci ratios. 5. The Gann and Fibonacci tools are the most rewarding ones, they attempt to predict. Most tools just measure. Suggest you look at some of the books devoted to the use of predictive tools.