Fibonacci Extensions

[jkeech]

Where can I find more information or a tutorial on Fibonacci Extensions?

I'm very familiar with Fibonacci Retracements and how to draw them etc., but know very little about Fibonacci Extensions and have not been able to find anything to date which clearly explains their use and the benefits of this tool.

Thanks, John.

[MR]

Fibonacci Extension

One source of information: Ron Wheeler's recording on Fibonacci Extensions for a quick look at this tool.

https://esignaltraining.webex.com/esignaltraining/onstage/mainframe.php?Rnd0877=0.7444477386376449

Using Fibonacci Extensions for Elliott Wave 3
Ron Wheeler
5/14/2003 4 mins 1.38M

Introduction to Elliott Wave Trading
Marc Rinehart
5/13/2003 12 mins 4.21M

The next best, second source is located in the technical section at the back of the AGET manual, start with pages T-32, T-33, T-34, T-35, skip to pages T-38, T-39, T-42 and T-43.

A third source of information, eSignal Product Training; miscellaneous links relating to Fibonacci Extension use below--

http://www.esignalcentral.com/training/get/tips/page3.asp

http://www.esignal.com/education/likepro/afarley/default.asp

http://www.infowire.net/td/html/synopsis_of_previous_newslette.html

A fourth source of information-- link to Tom Joseph's writing, "A Mechanical Trading System,"

http://www.advancedget.com/Support/Downloads/PracApp.pdf

Other areas to explore that you will find many examples if you search them out--

a) AGET Seminars and Events-- We offer different types of seminars for our customers and for people interested in our mechanical systems. I am sure you can learn how to apply the Fibonacci Extension tool more effectively at these seminars.

http://www.esignal.com/events/default.asp

b) Trader's Outlook-- Trader's Outlook is a comprehensive market analysis site that follows current markets using all of the tools available in the Advanced GET package. You can also step through the previous outlooks and watch how our traders might have reacted to a market in real time.

Review the archived charts. Select a stock, futures contract or index to review, and click on the word <previous> at the top right a few times. You will be able to find information, many examples on Fibonacci Extension, and other AGET ideas. There are hundreds of examples accumulated over the past five or more years. This may take some time, but I really believe this is an excellent source of real examples, and numerous examples where Fibonacci Extensions are mentioned.

http://markets.advancedget.com

c) It is possible the demo might have an example of Fibonacci Extension on it.

http://install.advancedget.com/GETDemo.exe

Look at the seminar video tape series. There are excerpts in the tapes where real-time examples highlighting some application of a Fibonacci Extension scattered in them.

A long time ago I read a book by a guy named Bob Prechter, who is credited with reviving Elliott Wave, and he has a review in his earlier book on Fibonacci and extension relationships with Elliott Wave.

I know there are other sources of information, but for the life of me I cannot remember them. One in particular…. Gosh, I wish I could remember where it is located, it would be helpful.. I will keep thinking.

- Marc

[fabrizio]

Robert Pretcher And Elliot

Marcus

Thanks for the last lines of your post .
With the class that distinguish you , you actually stressed a point that I'v nvere rised in public but I wish to now.

Linus is a bright guy and a really nice person , so I believe he would not take directed on him.

Nevertheless I Express my personal convinctions, and I prefer not entering in any polemics or go any further.
If someone want to I certainly will not pull back nor certainly refuse confrontation which is 75% of my life and my favorite sport.

I red - and I read daiiyly for I am subscribed to his free news letters- Pretcher.
For thist very reason I do not take him as a valuable guide for Elliot .

Read Elliot himself - as you MUST DO WITH GANN ABSOLUTELY if you want to understand him- if you want to get the meaning of elliot.

Read FISHER who is a scientist and a trader too able to pass from The highets level of Fibonacci knowledge to the thoroghfull knowledge of ELLIOT original text books.
Read Miner, Pesavento....if you wnat to have a SERIOUS GUIDE on Elliot.

Even Elaine Garzarelli ( it does not tell anithing to the youngest but I'm sure that Marcus remind her) had her 5 minutes of pop in sept. 1987. But did not marketing capitalized on that moment.

Read Tom Demark who recognize in Elliot the (quoting)"Absolute validity once you are able to find tops and bottoms"
But nobody who seriously approach Elliot takes Mr. Pretcher as a benchmark. Nor any softawre ( GET, MINER DT or ELWAVE )

Read Marcus Rehinahrdt who can explain with simple words HOW TO MAKE MONEY OUT OIF ELLIOT. This is the name of the game . Not being a fortune catastrofic teller, but a trader that can make money Every single day. In the safets possible manner

And Read Mr. TOM JOSEPH paper who created this great tool that allows anyone to approach a complex matter as Elliot in an tradable easy way . And be profitable.

Synopsys: all this means STUDY, STUDY, STUDY on not easy text and discipline and application.

With the highest respect for others opinions and ideas , this is mine.

Cordially

[fabrizio]

The fibonacci string from which derives The PHI 1.618 and its recipropcal 0.618 and all the squared an ^ series that derive from those, are rules of the nature.

Markets ( and nature, and beauty) obey in someway to this series of numbers in trems of "ratios", regardless Elliot or Gann.

As well as the world itself is in some way ruled by the 47th proposition of Euclides......

This do not mean to be esotheric but just recognize many issues - like the Plank constant- to which we are not able (yet) to give a logical and demonstrable explanation.

From here the whole movement that focused it's effort on the chaos theory and the consequently attempt to find an order within the chaos ;

Cordially

[jkeech]

Thank you a ton Marc and F, your time on this and the resources mentioned are very appreciated ... John.

[MR]

thanks

Fabrizio, yes, I remember Elaine (how do you put one of those smilies here?)

But seriously, all I can add from my own personal perspective, in this business I find it is easier to be humble than to be humbled. I personally admire all the names you discussed below. Because I know how hard it is to stick ones neck out with forecasts and predictions, I will defer from being too hard on them. They are all good people in my book.

What I would recommend to John and others out there -- just focus on what you can learn from others, try as best as possible to adapt it to fit your style and personality. And don't take everthing you read as the gospel... 'learn to discern.'

If you are persistant, determined, a little patient, I strongly believe you, too, can rise to the top of success in this profession.

AGET/eSignal software will help you all the way!
- - - - - - - - - -- - - - -

Originally posted by fabrizio
.... Even Elaine Garzarelli ( it does not tell anithing to the youngest but I'm sure that Marcus remind her) had her 5 minutes of pop in sept. 1987. But did not marketing capitalized on that moment....

.... Read Marcus Rinehart who can explain with simple words HOW TO MAKE MONEY OUT OIF ELLIOT. This is the name of the game . Not being a fortune catastrofic teller, but a trader that can make money Every single day. In the safets possible manner

And Read Mr. TOM JOSEPH paper who created this great tool that allows anyone to approach a complex matter as Elliot in an tradable easy way . And be profitable.

[MR]

Linus,

Excellent example! I commend you for taking the time to do this quality example.

Please be reminded I am not critical of Bob and what he teaches... if you scroll down I recommended his "Elliott Wave Principle" book to everyone for reading. I don't agree with all his calls, but then again a couple people say the same about me.

The key here is we all need to look beyond personalities, predictions and forecasts to what really matters. A basic knowledge of Elliott Wave theory is absolutely essential to successful trading today, and that is the bottom line.

If we combine Bob Prechter's teaching on basic Elliott Wave theory with the eSignals Advanced GET trading software refinements we all benefit with better trading. (Fabrizio also wisely recommended [below] other good Elliott Wave theory teachers.) I will always be grateful to Bob because his book is where first learned how Fibonacci relationships interplay within Elliott Wave logic. It has made a big difference in my work.

There is a saying, "fish for a man and he will depend on you to feed him, but teach a man to fish and he will be able to feed himself."

Your chart [below] teaches an excellent example how to apply the Fibonacci Extension tool, which is what this tread is all about. Thanks for showing a good example of how this AGET tool works. Now maybe others will be motivated to learn more about this excellent AGET tool.

[MR]

Linus,

Your chart is interesting. Have you ever enabled the primary, major, possibly intermediate pivots and taken manual Fibonacci Extension calculations off the various combinations? It is one way of using the Fib Ext tool. I use this technique to define better the various Elliott Wave ideas when strategizing. It is interesting how sometimes this manual application of mulitple Fib Ext calculations opens up visually stronger supports and resistance areas within an existing wave count.

Try it on this chart, say from the top to bottom to current swing. If you do enough of these calculations you could end up with a form of Fibonacci clustering. Just turn off the incidental or no longer needed lines if they obstruct your view of the data too much.

[fabrizio]

Linus

in this business I find it is easier to be humble than to be humbled. Marcus R.

You took it personally? Please don't

I'm a pacific but fearly orientated to confrontation person : as a personal sport, hobby, lifestyle, management style.
Most of this I've learned from my CEO in 1982 - 1984, Doug Tompkins owner of Esprit De Corp ( I was Vice president of Esprit BTW)in USA , SFO and NYC
So I have not - just because I enjoy it not because I'm not able to perform it- the will to use in certain cases the great "style" of Marcus: I like too be more straightforward.
I can be good at politics( anyone who workes for decades in complex structures as large multinational corp. need to be able to in order to "navigate" and to get to the top. I did It .)
Nevertheless I always stay within the education borders and respect of others ideas and opinions.

So said

Let's Humbly matrix some points:
- Do you trade everyday money?
- Is it trading your job or an hobby?
- For Curiosity ( linked to the discussion of course)What kind of approach you take in trading?Dow, Elliot, Fibo, Al Larson Tides and Moon rising? Gann? Bill williams? Steve Nison and candelstick pattern analisys? MA crossing, Tom De mark? Pyra Tools? Murrey Math Lines? Tarassov Air Software? Jurik?Bollinger, Yogi Berra Quoting(you can observe a lot only looking at it), Raschke? Mimmo Lo Cascio unique method? [Pretchers]?
Thanks for your answer

- I appreciate your skills - I've always told you- but there is no need of whatever [IMHO]to recognize a "possible "wedge a,b,c,d,e as you nicely point out in three post. But I'm puzzled :is it a Bearish or a bullish wedge? and what is happening after the (e)? : how will it be the movement?
I wonder if the exaustion pattern in this case is part of a complex or simple retarcements? ( what kind of Fibo ratio there is between the prior waves 1-2-3-4-5?)

Thanks for your answer, they will enhance the added value of this thread and let us -both- better enjoy the discussion itself.

Cordially

PS: Do not take it personally pleeeeese., even because that W4 you see on the Pretcher analyisys could be - with another short trem counting- a W5 close tha ABC THEN ABC THEN ABC ........or with a long term counting a not closed yet W4 with a W5 projevction on 1061.55...... This is TOM JOSEPH. but need a little study and application...............and money to risk on it. And if you use localize Elliot maybe you can get a confirmation to your Ideas...

Come diceva Franco Califano in una sua vecchia canzone d'amore."no non ho detto Gioa , ma noia noia noia, maledetta noia...."

[MR]

Linus,

(1) If you find Elliott Wave a distraction, go into the Elliott menu and change your setting to show just the major waves. This is a little technique used to give simpler Elliott waves. Trust me on this, there are times even just a very simple Elliott wave can illuminate something the naked eye misses.

(2) Back to Fibonacci Extensions – can you keep a secret?
I use Fibonacci Extensions a great deal.

Because you are a sophisticated Elliott wave person who can count his own waves, please take my word on it and invest time delving more into the AGET Fibonacci Extension tool. If you do, you can discover things that will only help you, never hurt you. You will be able to extrapolate or anticipate wave count possibilities before others.

Take for example the $INDU Weekly chart you show below. I am glad you used the $INDU Weekly chart because it is a good example where Fibonacci Extensions can help illuminate wave count possibilities within very complex wave actions.

Put the chart in training mode back to the market year 2000 top. Advance the chart until you have 3 pivots identified. If you need help, turn on all the pivots (I prefer not to use the minor pivots unless it is all there is.) Now apply Fib Extensions. Advance the data more. Keep adding more Fib Extensions. Highlight irrelevant lines and toggle them off. Do this without any other tool. By the time you have the data to today’s date; it will have more of a profound impact on you, seeing it in real-time action. Then continue this exercise into the future. It may even help your pocketbook.

No matter how many levels you can read into your Elliott Wave sequences, no matter how complex the wave pattern, this is one technique that adds insights.

[fabrizio]

Originally posted by linus71
Ciao Fabrizio,

what's going on?
If I shouldn't take it personally then why all those questions?
Well, there are days when I am lazy, writing mails or posting charts, then I don't trade money.
In trading I rarely use extensions, but retracements very often.
Funny, I never use Elliott counting in trading. I don't need it and the labels are distracting.
If you've followed my charts in the Advanced Charting Methods & Ideas thread then you'd know that I'm very fond of Steve Nison.
Why are you asking? Don't you know?
Or do you want to know if I know? Well, I'm just fine.


Post a chart!

Linus

Sorry sorry for the late response.....Iwent to my mech to set up the Bike .....

Well , well where were we? My questions Your answer and my friend Magister Maximum Marcus.....and the nice words...
Ok as usually I do not intend to offend anybody :this is first rule but.......I like confrontations I like to play "Jokes" or tickle the other...so........... I love to be in the arena and.....play though. Sorry I mean Though but loyally.
Now Nothing personally at all, I' m sure you got it. The only think that subtly - and even in pv - I've tried to "transfer to you" - who I judge an intelligent and nice person as always said, is to follow the flow of the river :
I mean do not - if I'm allowed- take the #6 example once you are at home of the # 1. I do not want to convince anyone on nothing : you like MR.P.? ok But let me express what - just because little older then you I believe about him and is concept of Money allocation.. :
A) Here you are at Home, safe and pampered. Right? Everyone try to explain you how to "be profitable " with the lesser risk. Everyone is here for YOUR satisfaction. Peoples who does at the same time 15/20 things and in the meanwhile trade. That because this is ESIGNAL way. All this for free. And you are not even obliged to have a esignal account.
I believe you deeply perceived this athmo, isn't it? Top Bottom and bottom Up.
B)We are talking about money after all , you need a lot of work to make 1 dollar , how about 5K or 50K? or a 1M? I have the highest respect for the work of people and for their money. And -honestly - I' cannot stand who speculate on this ......addressing people to pursue certain avenue that are risky and not viable: just for they have seen the light of revelation.

Simple is Beauty, but the simple of meu amigo Marcus: who can tell you the most akward and tangled concept in a very down to earth manner.
Or the Alexis Montenegro attitude towards excellence : give a fish or teach how to fish. Mr. Montenegro spend an enormous time and effort to teach the others ( myself first) step by step how to get from A to B and then once got tou down to Z. By yourself on your feet. Nice , isn't it ? all of a sudden you know how to manage this and that....geee but 2 weeks ago I did not even understand the Black & SCholes Option evaluation model and now....I got it! DElta, Theta, RHO ....friends.

You got the mean of my words ?
Again, do you remeber my words : follow the water, take the time , watch (humbly) and you'll see ; there is a number of hard working people - someone just for the simple pleasure and passion- following a VISION of a someone and realizing here something that is is much more than writing few superficial s books, have them marketed for few bucks, and then let you down convinced that ..........

Ok too long a speech , I hope you understood that nothing is against nobody: but why being harsh, false and irreverent against hard working first class people when there is no :
- experience
- knowledge
- sense of risk
- Focused ideas.

As I said The ball roll anyhow , shouting ok, but RESPECTFULLY. And saying proper concept ( BTW I KNOW ZILCH, GURNISH, ZIPPO, ZERO about RENKO). And be Loyal . Why? For This is a community.

If I am allowed the only critic that I can raise towards two bright and fast guys like you and JJ is to be OUTFOCUSED.
This is the name of the game in anything from business to love affairs; get passionate in one think , master it as much as possible with sweat blood and tears, risk your money, neck and face on yours convinctions and suppositions and constructed trades, be happy when you are right be humble when you are right, do not give up when you fail. Than open up your curios mind to ALL the immense mass of theory and approaches available around: they can only - not always- get you reacher and able to discriminate what is correct for YOU (your style) and what is not your style.
One word : Experience.

Period.

Let's keep on enjoy this thread as I said many tiimes, with nice confrontations . I learned something from you and JJ , I'm not shy to say so. why should I? I took Ideas, clues, freshness.

But once more this is not a game and money are not a toy - for most of us. So let's be Loyal as I learned in your country and respectful of the others work . And personality. Even if we pay and something doesn't work the way we like.

I hope that the length did not "diluted "the concepts.

Good study, trade and have 1000 good profitable days Linus.

Fabrizio