deceptingly simple.. its all laid out with examples at the sources i cited. In a nutshell... low to low gives a high equidistant high to high equidistant is a low. Of course it could be 2 ticks or 20, who knows! but useful nonetheless! heres some old charts for examples....
Thanks Kool, I've used a system similar since '98 for time and price projections. When I discovered my version of this I thought I'd merely reinvented the wheel. A lot of traders don't realize these relationships exist. Most of the time it works amazingly well for rough estimates with confirmation of other tools. Not the grail but a damn fine tool. Don't go crazy spreading the word.
well put, friend. i dont use any of my Kools tools alone .but prefer to use them together to get a picture of probable market action.... not a holy grail to be sure ,but extremely powerful tools to have in your arsenal!.... take note that i keep misstyping 855.75 when of course the projection was 865.75! lol, its very hard to post and manage a trade at the same time!
to get a real idea how to use these in trading ,just go to mypivots.com the es thread for 12-26-08 under traders lounge forum. we had another newbie(Molly) so i took great pains to explain my reasoning on a couple trades.... hope that helps!..... take note that i keep posting 855.75 when the short term projection was clearly 865.75!lol, its very hard to post and manage a trade at the same time! i think the same typo is on one of the charts i posted also!
I have read a number of your posts at mypivots. I understand you time cycle but I am still confused at your technique for price projection. Specifically, how do you determine which swing hi and swing lo to use with your 1.68fib multiplier? And do you have a priority time frame where you do these projections such as a 15 min chart. (I understand you trade from a 1 min chart). Thanks for any clarification you can provide. Nice thread btw.
i guess thats the $64000 question! i try to use the most important swing highs or lows for any projection, especially on the 15 min chart, which i use for a bigger picture overview of expected market action. its not that other lows or highs wont work ,but the more significant the low or high , the more odds of a significant bounce off the number once hit! frequently when we close to a 15 min projection for instance, suddenly the 5 min and 1 min charts begin giving the same number! As you pointed out, most of my trading is from the 1 min or 5 min chart since im so short term orientated. id tend to be in and out twice on a 6 point move for instance, taking 2 points at a time, instead of going for the whole 6 points . thats just my trading style and why i have such a high win % , most of my 'student' friends are a little longer term and they would go for the whole thing and do just fine! its just a personal preference thing.
go to the charts section at my pivots and youll see the days examples of what we were looking at (ie:which highs or lows we used) remember the important projection numbers are the 1.618 and 2.618 numbers!
VOwater and P.T.emini have their computers and charts with fib extention tools built in where i have to it the old fashioned way, in my head or with a calculator!...sigh... the students have become the masters?...:eek: