view view, read the 'Introduction' p3 several times not illustrated in the pdf/'system' is the use of the Fibonacci Price Levels (Retracement) tool having an understanding of EW imo means being better able to apply fibos to obtain Price targets â often Very accurate â where the Price stops, turns, interacts at such levels, one trades to the targets (I don't like AG's fibo tool and use the one in MetaStock) see ET's 'Software' for reviews
Yep, a lot of people thought that there would be some pretty stiff fibonacci resistance at a 50% or 61.8% retracement. Instead, the SPX zoomed right to the 78.6% retracement and blew out a TON of shorts! For what it's worth, I think that a lot of hedges and "collars" got triggered early in the week of "Triple Witch" on the downside, which then set the Street up for a viscious amount of short-covering and unwinding of those "collars". I think that we have had our run, and one heck-of-a-run it was! The "B-Wave" rally is over, and now we will chop around with a downward bias . . . time to do some number crunching with the fibs again!