Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Trader X who wrote (11355)	2/6/2001 1:07:13 AM
From: Lenny Rosow	Respond to of 12039

Trader X, Though there is no short answer to your following question, "On another topic, does anyone have anything to share regarding Fib?", maybe I can can give you an example of how I use Fib #'s along with Elliott Wave. On the Daily chart the !COMPX today looks to have completed a 3 wave (wave 4) 50% retracement of the move up (wave 3) between 01/08 & 01/24. Since I believe wave 4 is complete I would look for a wave 5 impulsive pattern to complete the move up from 01/03. I look to an area that contains a cluster of prices that are derived from the prior 4 waves & the retracement of the move down from the September 1st top to the January 3rd bottom. I'm not going to get into all the details on how I choose each Fib relationship from the prior waves but would suggest a good look at Robert Miners web site at: www.dynamictraders.com And no, I have no affiliation with "Dynamic Trader" 1)38.2% Retracement of the 09/01 top - 01/03 bottom from the 01/03 bottom: 4259.87 - 2251.71 = 2008.16 2008.16 x .382 = 767.12 767.12 + 2251.71 = 3018.83 2)100% Extension of wave 1(01/03-01/04) extended from the wave 4 bottom(02/05): 2644.80 - 2251.71 = 393.09 393.09 x 1.00 = 393.09 393.09 + 2596.73 = 2989.12 3)61.8% Extension of waves 1-3(01/03-01/24) extended from the wave 4 bottom(02/05): 2892.36 - 2251.71 = 640.65 640.65 x .618 = 395.93 395.93 + 2596.73 = 2992.66 4)127.2% Retracement of wave 4(01/24-02/05)from the wave 4 bottom(02/05): 2892.36 - 2596.73 = 295.63 295.63 x 1.272 = 376.05 376.05 + 2596.73 = 2972.78 So there you have it, a major fib price cluster at the area of 2972.78 - 3018.83. This is also in the area of what I think as major resistance from the lows in mid October. A close below today's low puts this current analysis in the trash can. Not a bad risk reward ratio. Lenny