2 methods of using fibo tools to project Price targets are:
1: use L - H and project levels from the L
2: use L - H and project levels from the start of W 2
since the fibo levels differ between # 1 and # 2
Q: which fibo is correct # 1 or # 2 ?
Q: do you use specific fibo levels or, any fibo line for Price targeting ?
Q: what determines your fibo methodology ?
Trdr
Q1 both
Q2 depends different structures follow different ratio relationships
Q3 far to complex to explain
i'll ellaborate a bit
you are using 2 measurements as projections but there is a third.
also a projection can be part of a contraction so at the point of measuring w1 and w2 you had 4 points of static measurement in actual fact there are many more measurements and the clue is this
the move up is directly related the the alternative move down
question 2 is the hardest to answer because i pressume the conventional way is to project waves such as w1,w2 to give you a conclusion to the move. you have to work big to small (timeframe)to determind where its going
when the low was made which was approx where i was looking for a low (was not trading it at the time) i concluded that unless the move up currently is correctional the
minimum target was 1.36 and change, once one knows where its going big picture then you can fine tune and work out the potential wave structure as it unfoldes
i could sit here and tell you the intent and pro acculmulation and distribution on different time frames the covering and short covering as it makes some here on this site all warm and fuzzy, in truth what the pros do is all measureable and in most cases blatant
expansion and contractions are a requirement of all markets the trick is when to know when and where is the dominant point one measures from
regards
