TheRumpledOne
6,411 posts
msg #46828
- Ignore TheRumpledOne |
9/10/2006 8:42:12 AM
Fib levels are simple.
1) Take the high and low for the period you are observing
2) I like to make the low 0% and the high 100%, then compute the 23%, 38%, 50%, 62%, and 77% levels.
3) You can compute the projection levels at 123%, 138%, 150%, 162%, 177% and 200%,etc.. -23%, -38%, -50%, -62%, -77% and -100 levels.
Usually the instrument you are trading will find support/resistance at these levels.
For example, when a stock tanks and bounces back, the bounce or retracement will usually be at least 23%, 38% or 50%.
Just goggle Fibonacci and you'll find plenty of material to study.
HTH.
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