We will be eliminating Fibs while price maintain descending eliminating clusters zones as possible reversals,
For those who are not already familiar with the name Fibonacci, you may remember hearing something about it in 2006, when the movie The DaVinci Code appeared in theatres. When Jacques Saunière was found murdered at the Louvre Museum in Paris, the strange position that this deceased character was placed in mimicked the famous painting of the Vitruvian Man by Leonardo da Vinci. This painting has been known to illustrate how Fibonacci ratios appear in the human form. The film also piqued the curiosity of some people when the characters in the film started talking about Fibonacci numbers as part of a clue or code of some sort. The Fibonacci number series and the properties of this series were made famous by the Italian mathematician Leonardo de Pisa.
Fibonacci price retracements are run from a prior low-to-high swing using the ratios 0.382, 0.50, 0.618, and 0.786
Extensions are run from prior low-to-high swings using the ratios 1.272 and 1.618 for potential support. They are run from prior high-to-low swings using the ratios 1.272 and 1.618 for potential resistance.
Price cluster is the coincidence of at least three Fibonacci price relationships that come together within a relatively tight range. These price clusters identify key support and resistance zones that can be considered to be trade setups. A price cluster can be created from three retracements, three extensions, three projections, or the combination of any of these price relationships.
Symmetry using the price projection tool with the 1.0 setting. (This is sometimes called an extension tool on many other analysis programs.) With projections, we are comparing swings in the same direction by using this tool, which allows you to choose three price points to make the projection. I use symmetry most often to project possible support or resistance in order to help me enter a trade in the direction of the trend. I project 100 percent of the prior corrective swings to help identify areas to enter the market in the direction of the trend. swings is the countertrend or shorter-term declines within a larger uptrend, or the countertrend or shorter-term rallies within a larger downtrend.
There is no reversal - this will take up though capitulation - party is over, inflation is here, protect your positions with puts while they are still cheap.
TradeChartPatternsLikeThePros
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@s_proper, what about if we could use the fibs as targets also ?
Laurent10
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Ok thank you....then maybe/perhaps or according to Fibonacci, the next level will be +/- 4380??? Thanks again, and thanks for getting back to me. Cheers.
TradeChartPatternsLikeThePros
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@Laurent10, 4380 almost done stay tune more prices coming up this week
Laurent10
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@Constantino, will do - thanks. Will it go to Dec 20's low??? Let's see. Chat soon
TradeChartPatternsLikeThePros
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@Laurent10, cant tell where is going really, what i know if keep smashing those fibs i know where the next prices lets keep an eye in this more updated chart
Laurent10
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@Constantino, hey....who can/knows where this is going? If it follows the fib then 'who' knows, but I've seen it change 180 degrees many a time....people/they are also buying the dips, the FED....institutional traders - anything can happen, but according to my interpretation of your charts and others....I'm thinking some further downside. Is there also gonna be this "crash" that many on TV have been screaming for.....recession??? And the list goes on. Surely there is way more NEGATIVE news/events/economics/etc than there is positive. Markets are completely out of touch with reality I think.....waaaaay overbought I think - but hey what do i know. Cheers chat soon.
Laurent10
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Hi...thanks for that Fibonacci analysis. So then can I then ask you, in your opinion with ALL this information, where will the S&P go according to the Fibonacci interpretation.\? Thank you & thanks for sharing. Cheers
TradeChartPatternsLikeThePros
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@Laurent10, we could see we could see 4460 anytime soon