Hi Jim,

Thanks for opening this Forum to your students and giving us an opportunity to show our charts and share our ideas.

Here is a chart of todays ABCD's in the russell. I will post a context chart later. Today was one of those days where the market changes direction on Jim's unique Fib numbers, Had you been trading with standard fib numbers you may not have noticed these PTA's. Is it me or is .564 becomming more and more prevalent?

Jim I love the "Homework assignments". I find them to be extremely educational.

From Kane Trading on: Advanced Fibonacci Trading Concepts. pg 122

"Many, many times you see exhaustion moves in the .786 and especially .886 areas. These moves can look downright scary, only to to have the issue reverse on a dime and start a strong trend in the opposite direction. But in no way am I implying that you should simply catch a 'falling piano' that looks to be accelerating."

"What I am saying is that, when you see this, dial to a smaller timeframe and observe, and see what appears to be developing. Sometimes tha issue blows thru the zone, but sometimes it respects the zone and sets up a truly great trade. If you pass every trade that looks like above you may miss some nice opportunities."

I guess that means you bought the low today. Nice one Sensei!!

The yellow line on the 3 min chart is a parallel line fron the low on Jan 9th that started this move. The red line is the 1.168 external retracement of yesterdays range. While I was playing with this I added the green line on the chart, that is the 1.272 extention from the middle of the gap to yesterdays low.Talk about harmonic! I am having trouble with the \\ set to point to a PTA near the low.





The next chart shows the exact price action on the 34 tick chart that Jim was talk in AFTC. WOW, what a great teacher he is!!





I am working on the Daily Pivots.

Nice work. The point is that the gap made it look scary, like a huge plunge, when it really was an orderly sell-off. This is particularly important to watch when the selling is worldwide, as this is, because a lot of action will happen overnight. The 60-minute set you had, which was also my set, give or take, had the first lower division line coming in right in this general area. This just had the look of 'bounce and roll' to me, the 'famous 1.272 stab fake' that overshot and went to a 1.618. I look anywhere in that area, but prefer the less 'radical' 1.272, for the same reason T mentioned in his excellent post on the TRS. My 1.272 technique has a lot of overlap with his tongue pattern, in the way I use it. The above is a great example of how I might be looking at 'counter-trend' intraday because of the extreme. I'm not opposed to playing extremes, as Geo routinely does, as long as I have a solid premise, and there was enough here to be looking at this. T mentioned in the chat room that he played this one and held all day. Nice going, T Man.

Two asides. Notice the reaction(s) as this battled the key .382 off the high. After one try it came back in an abcde and thrust up to a 1.128 'stop run', failing in its battle to overcome that key area, and rolling over 7 points. I saw this and mentioned in the chat room (which only had Scott and I and T in it, how funny this market is) that this is failing and that I saw it as a sell right there. This is not an exact quote, but as close as I can recall. It dropped right from that spot. The 1.128 'stop run' concept that I have discussed with Geo (and he has done some great posts on), it's in AFTC, was the key clue.

Second, if you want to see how I think when I look at things, most of which never amount to anything, try this. Take the extremes of that sideways tick action and find the .300 retracement. Then do the same for the 'congestion' that thanks to our resident MR 4-Point CP expert Duane we now all see is a 4-Point (it's probably my favorite MR pattern). Notice anything? Yes, the top 30% of the sideways action coincides with the bottom 30% of the 4-Point 'congestion'. Is there anything about .300 here?

I don't know, I saw the overlap and was playing with the brackets, looking to see what the overlap was. It was just about dead on at the .300's. Given the level of accuracy one can expect, if you did the retracements the other way, the .685's are almost right on. This is the type of thing I do hour after hour after hour, as my eye sees things and I create a 'database' of observations that I may do nothing with, or may come into play five years down the road. This is the thinking process that led to all that I have given everyone in the books. Just some food for thought.

Duane,

When you get to showing the daily pivots for Wed and Thurs, do one for today (Fri), too. Look at the range of the action before this dropped off that .382 (surprise).

example of solid premise.i watched tim morge sell a double top after test many times... so i was was very comfortable shorting the recent double top in gld after test of upper line.

Jim what am I missing? How has this helpful?

Show only the pivot. Do Wed's pivot over Wed data, Thurs over Thurs, and Fri over Fri and you'll see...

The pivot formula is (P) = (High + Low + Close) / 3 Correct? So the pivot for Wed is as follows..

Thursday





Friday

Pivots for the last 4 days including today.

M,

What did I do wrong?

D

thankyou duane i knew it was back there somewhere...