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Chapter 10, Part VIII. Advanced view on Fibonacci Extensions. Page 5

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

    Aug 28, 2009
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    5. As a rule, the latest extension is important (as on chart #5) and the major extension (as on your chart #4);

    Chart #4 GBP/USD Weekly

    Chart #5 GBP/USD Weekly

    6. If you have many different extensions – as we are on this GBP/USD weekly chart, you should apply those that are suitable to your potential position. Let’s assume that you’ve bought in C point at 1.5335. Using the most recent extension (chart 5) is more reliable, than those that on chart 4 or 6. Because they are forming during much longer time, hence to hit their targets it’s also a lot of time will needed. But extension on chart #5 has 1.0 target much closer. Besides, even if you have chosen extension from chart #4 or #6 and intend to hold position for a long time, you should keep in mind that extension on chart #5 will show you strong resistance or even reversal. May be better to exit and then reenter on some retracement?

    7. Much better if AB is thrust move, than some sideway almost flat move.

    And the last one for today – as retracement levels could be used as profit objectives, as extensions could be used for estimation areas of support and resistance. Only for that purposes it allows that “C” point” stands slightly outside AB swing. Here is how it looks like:

    Chart #7 GBP/USD Weekly
    #1 Sive Morten, Dec 16, 2013
    Lasted edited by : Mar 6, 2016
    Hamza Samiullah and fran alvarez like this.
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