These zones are calculated using Fibonacci Ratios of past price moves. Fib extensions and retracements are projected forward in time and price. If price bounces or reverses, it will probably do so at one of these zones.
Check my previous ideas for the PRECISION of these zones.
I will update as new zones are defined by upcoming Fibs.
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Most of the plotted zones playing out nicely. But looks I have an errrant one near bottom of pic, must have a poorly placed fib somewhere in the past.... will be checking .....
Impressive seeing how price reacted those zones over the following weeks.
I've always been skeptical of Fibs (for no good reason, really), but I love pivots and VWAPS for structure. But after seeing some of your ideas using Fibs I'll have to get over myself and look at incorporating them :)
I notice you have some Education ideas explaining some concepts, but is there anything you can point me towards in terms of determining Fib zones? If you're happy to do so, of course!
I do also peak at Pivots and VWAP, but Fibs are my primary tool for determining important price points. They might not tell me direction, but they tell me the most likely turning points.
The 'Zones' I draw are based on formations of clusters of important Fib ratios. I look at more Fib retracements as well as extensions. And where 2 or 3 lines appear close to each other, I draw a zone between them.
There is of course a lot of material out there on Fibs, but I have not found any that uses Fibs the way I do. Most of time you hear about looking for the ''618 or 382 retrace'' which is quite valid. But I am finding that the extensions are even more important, especially if you have identified the initial impulse, or the ''Pebble that hit the water'', to then map out the ripples which will follow....
DreamsDefined
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@euromotives, Thanks for the reply, I appreciate it!
I've always been skeptical of Fibs (for no good reason, really), but I love pivots and VWAPS for structure. But after seeing some of your ideas using Fibs I'll have to get over myself and look at incorporating them :)
I notice you have some Education ideas explaining some concepts, but is there anything you can point me towards in terms of determining Fib zones? If you're happy to do so, of course!
Thanks :)