Any comments on where to measure Fibonacci levels from, when there has been a spike. Lets say on Cable 1.8180 is a stron support level, which as been tested 2/3 times. Then there is a spike to 1.8175. Would you measure from where the main bounces have happened or where the spike went to ?
That's an interesting question, although 5 pips is hardly a spike. I frankly would like to know the answer...
Well, this still wouldn't change the fact that I do not have the wildest idea. but if I had to guess I would say every price that's touched ( even if for a sec.) counts.....
I always use the L-H/H-L for the initial measure of a Projection fibo; occasionally on very long waves on the Daily for instance either the LC-H or L-HC (HC-L or H-LC) is used. Retracement and Correction fibos also sometimes work off the HC/LC as is the case with the Correction fibo on the chart, but not the Retracement fibo. I 'step' the original copied fibo since it's the 200% level that is often hit signaling the completion of the move â often but not always. The stepped fibo is always placed on the Close, but sometimes needs to be re-positioned to the L/H. A Moving Average 1, Simple is placed on price bars to more easily identify the Close. More often than not it's the price Close that hits the levels after which the price changes direction with a correction of some sort. The 'confirmation' that the fibo is drawn and placed correctly is that the levels are being hit by the price. After an up/down move has completed I'll delete those fibos and work with only one or two fibos on the chart in the direction of the trend.
if its within a few pips, just use the higher high...it wont make much difference. usually when it trades deep against the high or low, say above 78% to 90 or so, its just a matter of time but the high or the low is gonna be taken out. (usually)