On 8th January price made a high of 1611 and retraced sharply down to 1535, a 76 point range retracement. By using range squaring of 76 points price and time square, we can see that price made 2 squares up to 1689
First square : 1535 + 76
=1611 level
2nd square : 1611+ 76
=1687 ( Price made a high at 1689)
Now if we run the fib ratios for the 2nd square 1640 is exactly on the 0.618 Fibonacci retracement level, 1670 is on the 0.236 level.
On the chart we can see that price bounced on the 0.618 level of the 2nd square at 1640 and reversed after hitting 1670, the 0.236 level.
Price breaking through 1649 down was NOT a fake break as many are saying.
Now if the 0.618 level at 1640 breaks we can expect the other ratios 0.667, 0.707, 0.786, 0.886 or the middle level 1611 line to offer some mid term support.
We can also run Fib retracement ratios for the first square if 1611 breaks down
The 0.382, 0.5 and the 0.618 level are the major areas to look for support.
The total expansion was 2.236 square expansion of 76 points
76 * 2.236 = 169.94
1535 + 169.94 = 1704.94 (short of 1 point)
On the time axis, the 0.618 time of the 76 x 76 square was 47 days.
76 * 0.618 = 47
47 days from 8th march was on 24th February, where the high 1689 was reached and a sharp reversal back to 1562.
1562 is also exactly on the 0.618 Fib level of the first square as shown on the chart.
Please check next post and lets discuss with a different approach and timing analysis, and also why the bounce occurred today 11th March. Comments are welcome, private chats and discussions are welcome, likes are more appreciated.
First square : 1535 + 76
=1611 level
2nd square : 1611+ 76
=1687 ( Price made a high at 1689)
Now if we run the fib ratios for the 2nd square 1640 is exactly on the 0.618 Fibonacci retracement level, 1670 is on the 0.236 level.
On the chart we can see that price bounced on the 0.618 level of the 2nd square at 1640 and reversed after hitting 1670, the 0.236 level.
Price breaking through 1649 down was NOT a fake break as many are saying.
Now if the 0.618 level at 1640 breaks we can expect the other ratios 0.667, 0.707, 0.786, 0.886 or the middle level 1611 line to offer some mid term support.
We can also run Fib retracement ratios for the first square if 1611 breaks down
The 0.382, 0.5 and the 0.618 level are the major areas to look for support.
The total expansion was 2.236 square expansion of 76 points
76 * 2.236 = 169.94
1535 + 169.94 = 1704.94 (short of 1 point)
On the time axis, the 0.618 time of the 76 x 76 square was 47 days.
76 * 0.618 = 47
47 days from 8th march was on 24th February, where the high 1689 was reached and a sharp reversal back to 1562.
1562 is also exactly on the 0.618 Fib level of the first square as shown on the chart.
Please check next post and lets discuss with a different approach and timing analysis, and also why the bounce occurred today 11th March. Comments are welcome, private chats and discussions are welcome, likes are more appreciated.