EWT and Fibs

Remo, if i may ask, why when you set your fibbo`s do you ignore the initial HH and the first LL. It looks like you have no entry point except for a load of fibbo no`s on this video. Also the fib extension although visual are not promoted as targets.

This is just an observation on my part. KI.

hi KI

This video was to show how to use fib extensions not the entry method.
by showing the video people can see how roughly to use the extensions. Lots of people dont know how its done so hence the video.
Fibs should incorporate the extremes and not in-between .
The idea of the fib extensions is to see where the supports and resistance will be so you should be able to work out where to exit or enter.
It also depends on what method you use.
So basically im just showing how a fib is plotted and thats it really.
You need to have a method in play before you use the fib extensions.

hope that makes sense
remo

OK thanks remo. So could or would you be able to use the fibbo to forecast future prices or are we only looking to confirm where a price has been. Sorry to be a nuisance but i would like to try and understand this fibbo trading. All help appreciated. KI.

Ki, you can see where the next Resistances or supports are by using the Fib Extensions, the dow video bit towards the end shows where the next resitances will be eg. 14000 & 17000 at the 161.8% fib extension.

Hi KI
Not being a nuisance mate. Thats what these forums are meant for.

you can trade of it.
The way i do it is when it approaches a key fib level i would ether short it or go long depending on where the fib was taken from.
So for me the best area is always the 61.8 fib level but the way i trade it is different from others. I always will trade the first attempt of that fib level during market hours only if it coincides with another level of support or resistance.
It could also be used to take profits from.
If you look at that video i did carefully then look at the 61.8 area on each of the fibs extensions. It seems to struggle there. It really depends on your style of trading.
My style is if the trend is up then any retracements towards a key fib will be a level to add new longs. i always use stops and generally take profits real quickly(pay myself)
Thats the same reason i had the other day with regards to the dow. The trend is clearly up so i always go long on key areas. Until that area is broken then why go against the prevailing trend.
sorry slightly diverging
but i hope that makes sense
Its all down to your own style of trading.
I generally go against the norm.
remo

Had a look a few times, i dont seem to understand whats being said. I thought a fibbo was drawn from the top and a bottom of a range....0-100 with the fibbo extension 161.8 and 261.8 as the next targets. Any chance someone can take a screen shot and point out what i am not seeing. Soz for being a bit thick about this. TIA. KI.