note that 2 friends at mypivots have rfined my methods where they would add the 19.63to the retracement value at 857.75 instead of the start of the move like i do. this gives 877.38 as opposed to 875.50, and they have proven to be very accurate also! Also note that all projections become invalid if the start of the move is touched again! also note that the hourly chart has even higher projections from the recent 828.75 low!
If you project from a swing low to a swing high your projection should be above the swing high. So in your second example where the swing high of 866.25 comes before the swing low of 862.75 shouldnt that give you a projection that is lower? namely 866.25-862.75=3.5x1.6=5.6 ie 862.75-5.6=857.15 or 857.25 to the tick.
well i suppose the simple answer to that question is to simply look at the chart. surely the high at 871.50 is more important of a high? also about 5 or 6 bars later when we once again touch 866.25 that projection would be invalidated anyway! had we continued lower it surely could have been a valid projection.
though very simple ,it does take some getting used too! practice for a while and you'll be amazed at your ability to make incredible calls! follow our trades at mypivots and see if you can tell why we are looking at certain areas! its bound to help improve your trading.
more fun with cycles... like projections, they can be confusing! there are literally dozens of cycles on any chart so you only want to pay attention to the more important or bigger ones!
enough with the examples.. you get the idea ,just remember ,pay attention to the cycles, price projections and even the tech.indicators to see how oversold/overbought we are. Play around with it and you will see the magic! see if you can tell why i sold gold today at 871.00!