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today's trade 1575


jim kane has done extensive work on the fib 1.128 as the '' stop gun fib'' and the .886 as the '' last gasp fib''i am happiest when price spike or gaps into the .886... i.e last gasp. one of two things i have taped to my screen is'' gaps lead to trend days..my main focus is trading kane abcd's that complete at a line... i am especially focused when that completion occurs on a gap at the ,886( iwm)... i am almost falling out of my trading chair when another index the qqqq simultaneously completes an abcd on a gap at .886..this set up, completion abcd at .886 at line from medianline set on a gap catches traders looking the wrong way at extremes and give a very good risk reward ratio.
though today the .886 was the key, i have included once again the 1.128 chart.

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using the tools, price has hit downside target...tightening stops

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target hit.. tighten stops

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what is the basis of calculation to arrive at 1.128 being a fib ratio please. ?
Alex,

I derived the .886 as the fourth root of the .618 (or more simply, the square root of the .786). The 1.128 is simply the reciprocal of the .886, just as 1.618 is the reciprocal of the .618, and the 1.272 is the reciprocal of the .786 (the square root of the .618), all commonly used by Fib traders.