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Chapter 10, Part VII. Fibonacci Extensions. Page 4

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 16, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Commander in Pips: Ok, now, let’s take a look at a down thrust. But here I want you to mark Fib retracement and expansions.

    In a downtrend:

    During a downtrend we should enter Short from Fibonacci resistance level and take profits at Fibonacci Price extension levels. To estimate and draw these extension levels you should accomplish three-click procedure:

    1. Click on significant swing high. For example, this could be any X point, according to our terminology;

    2. Drag your mouse to significant swing low. It could be an “A” point, for instance, - most recent swing low, but this is not absolutely necessary;

    3. Then drag your mouse to the most recent high, from which the recent down move has reestablished – this will be the high of the market that usually stands around highest retracement level that has held market during retracement.

    Pipruit: Ok, I’ll try.​

    Commander in Pips: Here is your chart – let’s assume, that you’ve seen this evening star and followed the swing down. So you intend to enter short:

    Chart#5 EUR/USD 4-hour chart
    [​IMG]

    Pipruit: Ok, here are the Fib retracement levels:​

    Chart#6 EUR/USD 4-hour chart
    [​IMG]

    Pipruit: And when I am sure that we’ve got our “B” point – the highest point of retracement up - we draw expansions:​


    Chart#7 EUR/USD 4-hour chart
    [​IMG]

    Pipruit: Commander, I’m stunned again – the market has turned up precisely at the 1.0 extension level.​
     
    Hamza Samiullah and fran alvarez like this.
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