Dow Jones Industrial Drop & Rebound Projection - Fib Retracement
Of course I'm betting that price will follow one of the yellow lines, but let's talk about why...
Drawing the with the Fibonacci Tool with the correct ratios has a profound effect - you can start to see where the market will reverse with surprising accuracy, even when the market is creating new highs.
To set our Fib tool we use these ratios:
0 - Trend Beginning
.382
.5 - Half (not a harmonic number, but I find value in having it)
.618
1 - Trend End
1.618
2.618
3.618
4.618
We can then use the tool to look for new resistance/support that has not been drawn yet.
:PAST: Drawing A to B shows us the next resistance at the 1.618 line. It hit and reversed at that point (around 350 points off) SEE CHART
:PAST: Drawing C to D shows us the next resistance at 1.618 as well, where price resisted and was able to break through to the 2.618 (around 80 points off)
:PRESENT: Drawing C to E will show new possible support/resistance- We would normally use past values to draw this, but there are none!
-------------We may even look further for the .886 retracement (not drawn) and the .786 retracement (also not drawn) for price to bounce and resume upward. ----------------------
: FUTURE: Drawing from (new low point) to E will show us the next possible stopping point for the DOW
This is all due to @cdschultheis HE PREDICTED ONE OF THE BIGGEST CORRECTIONS OF THE DOW, AND DIDN"T POST IT. hahahaha
Drawing the with the Fibonacci Tool with the correct ratios has a profound effect - you can start to see where the market will reverse with surprising accuracy, even when the market is creating new highs.
To set our Fib tool we use these ratios:
0 - Trend Beginning
.382
.5 - Half (not a harmonic number, but I find value in having it)
.618
1 - Trend End
1.618
2.618
3.618
4.618
We can then use the tool to look for new resistance/support that has not been drawn yet.
:PAST: Drawing A to B shows us the next resistance at the 1.618 line. It hit and reversed at that point (around 350 points off) SEE CHART
:PAST: Drawing C to D shows us the next resistance at 1.618 as well, where price resisted and was able to break through to the 2.618 (around 80 points off)
:PRESENT: Drawing C to E will show new possible support/resistance- We would normally use past values to draw this, but there are none!
-------------We may even look further for the .886 retracement (not drawn) and the .786 retracement (also not drawn) for price to bounce and resume upward. ----------------------
: FUTURE: Drawing from (new low point) to E will show us the next possible stopping point for the DOW
This is all due to @cdschultheis HE PREDICTED ONE OF THE BIGGEST CORRECTIONS OF THE DOW, AND DIDN"T POST IT. hahahaha
Order cancelled:
Not going to happen anytime soon with Trump in office - it would need to go below the price when he took office.
Look for the same measurement C to D to have some sideways movement at 3.618
Look for the same measurement C to D to have some sideways movement at 3.618
