Strangely enough, I actually understand whats going on here. Very clever, would love to know how you worked this out lol
TheTrex
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@OJFX_, Well I'm refining this technique now a bit but found out how it's replicable. So basically you want to find a 1x1 price/time square like how Gann does it. I take the begin of the dump and the bottom, so the price range is 1, however the time is only 1/2. So you have to take time fib extension to find the 1 time-length, then you got your two extremes and a 1x1 box where trading action is defined within. Next I take a speed resistance arc (put on full circle) and we go from the bottom to 1/2 price so the radius is a 1/2 price/time. Scale it accordingly so that the circle is does fit our 1x1 price/time box and we get a valid fib resistance circle :)
Well the ratio's which apply to fibs, like .382, .5, .618 do also apply in radians. You could calculate the angles which apply for those fibs, like if 90 degrees = 1 and 0 degree = 0 then the 0.618 angle is 90*0.618 = ~56, the 0.382 = 90*0.382 = ~34 and the 0.5 is of course our 45 degree angle or from lower bottom corner to upper right from or 1x1 box passing through the origin of the circle.
Experimenting with Fibonacci and it's ratio's within geometry is very interesting and surprisingly works if you know how to apply it :D
OJFX_
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@TheTrex, Couldn't have asked for a better explanation if I tried haha. I have looked at geometry within trading a few times but can't quite hit the nail on the head with applying it myself. Once its there I can understand it all. Hats off to you for understanding and producing the whole thing yourself! I'll be keeping an eye on your future posts! Thanks
TheTrex
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@OJFX_, Plus since the chart is scaled accordingly, we got 1x1 square plus the circle fits, that also makes sure all fib spirals are correct and as we see they interestingly have good point in both past and future :)
TheTrex
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@OJFX_, The trick of this all is to understand the geometry relation between the square, circle and the angles the create.