EWT and Fibs

Cheers Jackozy,

That is the clearest i have ever seen it explained.

RMc

I would really be interested to see an example of the fib Expansion used in real life, eg. on the dow or on a share,eg. the inverse 1.618 (common Fib expansion target for a wave 3),just so Myself & everyone can see & understand how this is works out, where do you take the fib from eg. is it taken from wave1 that gives you the 1.61 expansion for the end of a wave 3?

Hi MRA4. Here's a recent (sort of) obvious example:

dl.dropbox.com/u/20815047/GKPweekly25_10_12.gif

161.8% extension of 4.5p to 202.75p projected from 87p gave 410 ish. Funny thing is, though, the retrace from there means that it can't have been a wave 3 of same degree as the 2 primary waves which generated it since it's retraced into wave 1 territory (unless it's a very strange leading expanding diagonal triangle!). We weren't to know that at the time though!

I haven't forgotten I'm due a follow up to my earlier post - got to earna few £s too!

Here's another MRA4: dl.dropbox.com/u/20815047/USDGBPdaily26_10_12.gif

I take it the fib was taken from wave 1 and then put at the bottom of wave 2 to get your target for wave 3.
im sure thats what your on about.Some people may not understand that part.
Only reason i say this is because i had to look a second time. And i understand this...lol

Lol! Yes, remo - bottom of wave 1 to top of wave 1 and then projected from bottom of wave 2. Different chart packages draw extensions in different ways though so each member will need to check how their own chart package works.

You can work them out manually using the following formula:

(1.618 x (wave 1 top - wave 1 bottom)) + wave 2 bottom = wave 3 high projection