EUR/USD Daily Video, March 23, 2011

[Sive Morten]

Good morning,
Looks like retracement has started. 1.4050 area is still very important because market behavior around it could clarify further market move.
If you intraday trader - then possibly you can make B&B Buy trade on 4-hour chart:




The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.

 

[Venelin]

Thanks Sive! B&B worked to the pip!

 

[FPAK47]

Great Analysis, Thanks.

 

[Dollar-Reaper]

4 Hour Chart of 23.03.2011

Dear Sive,

Could you possibly explain to me why my Fibonacci 1.618 expansion on the A,B,C pattern in your illustration on the 4H chart on 23rd March’s video is almost a 100 pips less than yours.

You’re "A" was 1.3741, "B" was 1.3984 and "C" was 1.3836. Logically the expansion would be based on the difference between "A" and "B" which in this instance is 243 pips (1.3984 - 1.3741) multiplied by 1.618 is 393 pips which if I add that to "A" would give me a 1.618 expansion of 1.4134 not 1.4229.

Similarly if I take the difference between A and B (243 pips) and multiply it by .618 and add it to "B", I should also arrive at the 1.618 expansion, which I do 1.4134.

If I use the Fibonacci tool on Meta Trader it also gives me 1.4134

Is there a difference in a DeNappoli Fid Tool and the standard Meta Trader tools, could that be the reason?

Kind regards
:err:

 

[mariff]

gud job...thanks sive

 

[Sive Morten]

Dear Sive,

Could you possibly explain to me why my Fibonacci 1.618 expansion on the A,B,C pattern in your illustration on the 4H chart on 23rd March’s video is almost a 100 pips less than yours.

You’re "A" was 1.3741, "B" was 1.3984 and "C" was 1.3836. Logically the expansion would be based on the difference between "A" and "B" which in this instance is 243 pips (1.3984 - 1.3741) multiplied by 1.618 is 393 pips which if I add that to "A" would give me a 1.618 expansion of 1.4134 not 1.4229.

Similarly if I take the difference between A and B (243 pips) and multiply it by .618 and add it to "B", I should also arrive at the 1.618 expansion, which I do 1.4134.

If I use the Fibonacci tool on Meta Trader it also gives me 1.4134

Is there a difference in a DeNappoli Fid Tool and the standard Meta Trader tools, could that be the reason?

Kind regards
:err:

Hello,
Any extension should count from C point and not from A or B:
(B-A)*1.618 + C = 1.4229
Hope it helps

 

[Dollar-Reaper]

Thank you Sive,

I will take it up with Meta Trader.

Kind regards.
DR