ES 12-26-08

Good morning all! just sold 2@ the 15 min deadly projection of 868.50; Lets keep in mind however that there is an outstanding hourly projection of 871.25 yet to be fullfilled.

ABC projection off POC / LOD

quote:

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Originally posted by VOwater

PT, I was trying to show sj how to come up with koolstools projection. Actually what that shows (and kools "projections") is the "Extension" of that specific leg (A to B in this case). So, when we talk about finding "projections" using Kool's method we are really using incorrect terminolgy. There are 4 types of fibonacci: retracements, extensions, projections, and expansions. I was thinking about doing a fibo thread because I know there is a lot of confusion out there. That is going to be on my to-do list. Hope this doesn't come across as I'm some fibo expert, guru, maharishni because I'm not!

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I also am sensing some confusion on the terminology. And the correct application of the KoolTools technique. I also think it is important to know how to correctly apply the Fibonacci tools in the charting programs we are using. I apologize to anyone that I have confused with my terminology (calling an extension a projection for example), or any other incorrect application of Kool's technique.

I just got out one of my Fibonacci books, written by the folks over at Elliott Wave International (EWI), who I consider the authority on this subject. They have a handy table of all the Fibonacci ratio numbers. These ratio numbers are all calculated as powers of the square root of phi, and inverse ratios of those. The ratios of the square root of phi are the Fibonacci Extension values (1.272, 1.618, 2.058, 2.618 ...). and the inverse ratios of the square root of phi are the Fibonacci Retracement values (0.786, 0.618, ...).

It turns out, some of the Fibonacci retracement and extension numbers set as the defaults in the Ninja Trader charting program are not valid Fibonacci numbers ! I had to re-work all the default numbers in NT to line them up with the EWI table. If you start a thread, perhaps in the trading techniques section of the forum (so it wont get lost), I will add the EWI table to the thread for reference and safe keeping.

Here is something to look at...

Using Kool's cycle method plus a fib fan+retracement
we get a possible price lineup coming next week. This indicates that there could be a possible big move ie straddle might be a good idea to look into... But Kools cycle is showing a mini'low' so maybe this move would be biased to the upside and there is also an abc pattern before this still not negated...
This is something I just came across, throw some ideas out there what you think about it?