Fib Retracments

[mktbuswiz]

I have a buddy that I trade with. He uses retracements and I don't. We both clicked on the exact time frame on the Euro today @ 9:00 AM Eastern time frame.

1. I click on Fib Retracement tool.

2. I click on the time frame, .i.e the bottom of the candle @ 9:am Eastern candle.

3. I click on the top of the time frame @ 9:00 AM eastern.

My trading budding and I should get the same retracement numbers going in the exact same direction. We don't.

My number go up and apparently, his numbers go down way past the 1.1778 starting number.

Why is this happening and what do I have to do to get it to work correctly?

[ACM]

mktbuswiz
What symbol, interval and Time Template are you using? Are these the same used by the other person?
Does your Fib Retracement Tool have the same settings?
You may want to post an image showing what values you are getting.
Alex

[mktbuswiz]

Fib retracements

Alex,

Thanks for answering my email. I got it figured out. My buddy did have more numbers turned on in the edit fuction than I did. Thanks for your help.

I have had great success with Fib. Retracements over the past few days. Where do I go for a full understanding on the use of Retracements?

Thanks

Brad

[DuaneG]

Hi Brad,

Next week we'll be conducting our online class, Introduction to Technical Analysis. This class covers how to properly use both Fibonacci retracements and Fibonacci extensions. This class is completely free and one of our most popular events. If you would like to see some Fibonacci illustrations, this is a good event to attend.

To join, you can click the following link and scroll to the bottom for eSignal Events. Choose the online tab and register for Introduction to Technical Analysis. I'll follow up this post shortly with some screenshots that should get you started.

[DuaneG]

Hi Brad,

For educational purposes only

I took an example from yesterdays trading on the AB contract. This is one way in which the Fibonacci tool can be utilized. I drew the retracement from 687.60 high to the 681.20 low.

With this retracement illustrated, we can see how the price action was unable to surpass the 38% retracement level. Being that the price action could not move beyond this level, it quickly took a turn south that yielded several points of continued downside.

[DuaneG]

Hi Brad,

For educational purposes only

Yesterday, I illustrated how to use the Fibonacci retracement to find support and resistance levels within the confines of a defined trend. Today, I wanted to provide an example of how the Fibonacci Extension tool can be utilized.

The Fibonacci extension tool is closely related to the aforementioned Fibonacci retracement utility. The primary difference is that the extension uses 3 points of contact to isolate possible support and resistance levels off of a given trend and the length of a pullback within the trend. When we use the Fibonacci extension, we are basically isolating the respective Fibonacci retracement levels of a trend and then shifting those levels upward or downward to find possible price targets.

In the example below, we are using a daily chart of ES #F. This also reiterates that the premise of Fibonacci analysis crosses both symbol variations and time interval (yesterday we used a 3-minute chart of the Russell emini futures).

In this chart, we can see that the support and resistance levels are illustrated using the primary rally coupled with a short pullback. It takes some practice to become efficient and accurate with these tools, but by sticking to high and low pivots, I'm sure you'll begin to see some correlations. Hope this helps. I'll include some examples of Fibonacci Time Zones and Fibonacci Circles shortly.