Fibs and Energy Markets

Discussion in 'Technical Analysis' started by Neodude, Aug 24, 2006.

  1. I have added a new, more detailed code in
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=81457
    The code searches for the optimal Zig change n, from n=3% up to n=10% [you may enlarge this range but for n>10 you will have very few Peaks].
    For the last 10 years of the ^NDX, the 31% of the retracement ratios d is 0.50<d<1.00 for n=10%.
    If you try to narrow the range, only the 19% is between
    0.25<d<0.50 for n=9%.
    More detailed range gives worse results, only the 12% of the retracements is
    0.60<d<0.70
    for n=10%.
    Some of them may be considered as 0.618, but is is just the 12% of the total retracements.
    This is poor and it is impossible to use it in any serious decision making.
     
    #11     Dec 21, 2006
  2. #12     Dec 21, 2006
  3. I assume some traders in energy as well as other highly volatile
    markets use daily pivots too
     
    #14     Dec 22, 2006