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projections 5134


One aspect of Kool's method which is sometimes difficult is making projections. If you look at Kool's chart posted at 8:32 you will see that the downthrust could also been terminated a little higher around 1191.50 at the low of the candle just before the green hammer. Using this projection would have given a 261 projection of 1085.50ish-not as accurate where Kool's projection was but still, not too bad. One would have needed a 3 point stop to survive. I generally use the rule that unless the next candle retraces by at least 50%- the thrust is still on. Maybe this is wrong but it seems to work pretty well. Any comments welcome.

here's a chart for clarification. note: I use fib from beginning of the move, so my 62 is equivalent to Kools 161 and my 161 is equivalent to Kools 261.
Click image for original size
11 20a
You raise a great issue Einstein . How much retrace? I have found that i have loosened up on my parameters to around 50% also lately . I used to use 25% or so but found it too retrictive.