If i may bring to your attention also something that is very important to take into count ,, IF we trade larger time frames ,,, this can prove to be an extremely Major low it has come off , and the reason i say that is , IF we look where this huge down trend started we see it was march 2011 , where the market put in the first major run down , which WAS the YEARLY range , then last year it was an inside year range , and this low we had was in the zone of 100% repeat of the first yearly range giving us a target of 1.1206 , Now thats extremely close when comparing 3 years worth of market action in my opinion , AND IF we use that yearly range and start from the top of the rally after that first low ( Dec 2011 ) , we see the market repeating the range , while in the process we can see the market reaction at the 50% then 61.8 then 76.4 and between the 87.85 and 100 repeat level u will see the market starting to have a headache and struggle ( all this can be seen by carrying the FIB and placing the zero line on the rally top Dec 2011) , and then when it finally crossed the 100% it cruised down very effortlessly to the 141.4 extension with a target of 1.1190 ( notice it did NOT stop at the 127.2 level of that range because there was stronger commanding factors that forced it to gravitate to the level where it stopped ( 127.2 of a more commanding range ) ,, ALSO , a 76.4 retracement of the MAJOR run up from 2005 low to 2011 top , gives us a target of 1.1222 ( 76.4 in my opinion is much more powerful than 61.8 , a deep test will prove that ) hence why it did not take any notice of the 61.8 and just marched right through it . and also , there is another extremely powerful point which is a part of the theory that i have come to see in market reaction , due to my deep and intensive study of FIBS and the application of , which is very hard to fully explain verbally here , which gives me a target of 1.1190 and a level to expect some kind of reaction , which sure did as we had 5 weeks rally off that level , then it retested now , which to this moment has created an UN confirmed HIGHER bottom ,.
After all , it does NOT have to stop here , and it can continue down , but i only wanted to express my thoughts as to the WHY we have seen a good rally here after almost a 1500 pip range from this years high .
After hundreds and hundreds of hours of study and research ,, i have to the conclusion and without a doubt in my mind that,, the market ONLY expands to FIB levels and nothing else ( BUT thats my humble opinion )
Hope this was NOT confusing to some , and thank you for the opportunity .
Cheers ,
George
