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YMH1, 15 & 16 Feb, Fib Stretch, 4.25%, 2.618% price reversals


Howdy,
15 & 16 Feb YMH1 Stretch = 25 = X, ... 2.618X= 65, ... 4.25X=106:
Big picture:
15 Feb low: 12167 + 4.25X = 12167 + 106 = 12273 (16 Feb high: 12283).
16 Feb high: 12283 - 2.618X = 12283 - 65 = 12218
(The 16 Feb high produced a quick sell off to 12213, the B session low, and reversed up to 55 pts to 12268. The 55 pts pullback = 51% of the 116 point rally, 12167 + 116 = 12283)

15 Feb first rotation: 12167 + 83 = 12250, whereafter three rotations, i.e., -25, +24, -25 reversed between 12250 and 12224.
From 12224, that last price rotations are as follows ...
12224 + 59 = 12283
12167 + 106 = 12273 ... (Note: 12167 + 4.25X = 12273 (16 Feb high = 12283.)
12283 - 70 = 12213 ...... (Note: 12283 - 2.618X = 12218
12218 + 55 = to 12268... (Note: .382 of 55 = 21 ..... 12268 - 21 = 21)
12268 - 23 = 12245 which reversed up to 12276 for the final reversal equal to or greater than 25).
Hunter pretty good analysis. Can you just explain how do you calculate the stretch? Can you do same analysis on /ES on show?

Thanks
Hi,
Yes, the Stretch is available at www.mypivots.com.
The YMH1 Stretch (but not the Fibonacci ratios, 1.618%, 2.618% and 4.25% of the Stretch) can be found at: http://www.mypivots.com/dailynotes/symbol/389/-1/mini-sized-dow-5-futures-march-2011 ... or you can click www.mypivots.com ... HOME ... DAILY NOTES ... and the contract of your choice. You'll find the Stretch at the bottom left. Let me know how the strategy and formula works for you.
(Note: part of the strategy should consider follow through from the high or low rotation going into the B session close. I've found fading 1.618% of the Stretch to produce less risk, more often than fading at the first Stretch reversal.)
Let me know how the ES trading works with the 'fade the first move by the Stretch (or 1.618% of the Stretch).
When the markets reacted to the strife in Egypt, YMH1 fell ten points beyond 2.618% of the Stretch, and reversed 300 pts ($1500 per contract) over the next couple of days.
I may not have answered your question directly. Multiply the Stretch by 1.618%, or 2.618%, or 4.25%.
My hobby uses $100MM satellites to track plastic and tupperware. lol