BG.

Nice spot Jackozy!!
I missed my entry by 1p day before yesterday .. will have to wait for another setup now.

Looks like the high today may have been 1058. SO can you correct me/give feedback if this is correct from what I have been reading today: Fibonacci retrace would be the difference between 991 and 1058 =67 For 61.8% retrace take the 67 multiply it by 0.618 = 41.4 Take that away from 1058 and means if it retraces 61.8% it will come back to 1016.6 or 1016.5 to keep it sensible.

How likely is it to retrace only 50% (1024.5) or 38.2%? (1032.5)?

Hi Geela,

Yes, that's the correct way to calculate Fibs manually. Most chart packages have a Fib tool to do it for you.

As to whether 1058 is the temporary top and how far it may retrace from here, we can't be sure yet. I would normally look towards the 61.8% Fib for a retrace from an initial rise after a downtrend as that's the most common level. It can be more or less than this.

Once the top is confirmed by a lower high then we can plot the Fibs and look for buy signals on the short term charts (eg hourly) to check whether it looks good to enter. In my experience (and according to EWT) it's very rare for an initial retrace to be less than 50% but it's not impossible.

Good luck and keep learning!

I'm actually long on this again now. After breaking 1050 it backtested that level and bounced so I went long. That's the advantage of selling at a resistance: if it goes through you can get back in on the backtest.

It's also forming a Three White Soldiers reversal pattern today.

Anything I should look for in particular as a place to get back in then?? I am a novice trader (was trading with an advice account for over a year that was mostly HORRIBLE! so got rid of it and have had a couple of trades since then on new account and really just getting back in the saddle and learning as much as I can - now know what 3 white soldiers is and looks like!thanks for that. I am looking at setting up an ADVFN account to be able to chart is that a decent site to use (seems reasonably priced per month I presume that type of charting is not available free) Thanks for any advice you have for me I really do appreciate it. Geela