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ES 12-18-08 CHARTS


Thanks so Much VO I appreciate the detailed response. Do you run the fibs etc on the weekly , Monthly and quarterly too ? It seems that the S&P market has so much back fill and participants SEEM to have short term goals that most are looking at the "trees" instead of the "forest". Perhaps that is the best way to look at this market as it just doesn't trend that much.

Having you folks post your charts is great because other traders can "tailgate" on your time frames and make profitable trades without having to search for the ultimate time frame/ fib combination.

You made such a complete response that I don't have other questions at this time but I know where to find you if I do.

Thanks.

Bruce
Glad to help and yes bruce I do run projections on all time frames...and your right that we get so envolved in the minutia of the market that we lose perspective of the big picture. I will post you a weekly chart shortly on the 12-19-08 thread.
PT...I have not done any extensive testing in regards to the retrace or reversal of the 161.8%. I can tell you that in a lot of cases they end up turning into one of the 5 point harmonic patterns (Bat, Gartley, Crab, Butterfly). The only difference between those patterns is they each have their own specific fib retracement & extension ratios. For instance, the BAT has an AB retrace that must be between .382 and .50, while a Gartley's AB must be .618. Your specifically asking about the 161.8% and all of the patterns can start (end) there.

I have some recognition code that auto looks for those patterns but I only glance at those charts occassionally throughout the day. The reason being is that you have to determine the pivot strength sensitivity that the program looks at. I just leave it at 1 setting and if something pops up great. If you go to www.harmonictrader.com you can download a free book about the 5 point patterns. I do need to spend more time on the terminal point of the ABC's because they are great risk reward setups. Let me know if you have additional questions.
Thank you VO, your help and explanations are greatly appreciated !