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Chapter 10, Part III. Advanced talks on Fibonacci Retracement. Page 6

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

    Aug 28, 2009
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    Commander in Pips: Don’t be afraid - you‘ve done well. I suppose these will be the last ones:


    Pipruit: Ok, let’s see:​


    Commander in Pips: Very well, but don’t you see something, say, “unnatural” in these markings? Although you’ve marked them correctly, there are some needless things. Personally, I’ve marked them as follows:


    Pipruit: Hm, I see that you’ve just erased some markings, so you do not take these swings into account?​

    Commander in Pips: Absolutely, because all retracement levels that could be obtained from them, have been already broken by price action. Look – on the left picture – I’ve erased X’1-A’ swing, because X’’-A’’ move totally broke all possible levels of X’1-A’. So the same with the right picture – X2-A swing totally erased all possible levels from X’2-A’ swing. So what for overload our chart with needless details? We should look only at those swings levels from which are still valid and could influence at our potential position. For instance, take a look at left picture again – I’ve remained intact X’-A’. Why?

    Pipruit: May be because A’’ point is a bit lower than X’ and some deep retracement levels 0.786 or 0.886 from X’-A’ swing are still valid and could lead to resistance?​

    Commander in Pips: Definitely.

    And the last one here – there could be hidden “X” points that are not correspond with our rule. But, nevertheless, they should be applied. With details you can read about it in DiNapoli’s book. Here we can only say that they are low or high of the thrusting bar (or some thrusting move) and gaps.

    Also take a note, that the importance of different “X” points will be also different. The “X” points of thrusting moves are more important, than “X” points from consolidations. The more important the “X” point – the stronger Fibonacci levels obtained from it.

    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.

    Note: FPA ranks are earned in the battles against scam, not in the classroom.
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Mar 4, 2016
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