Getting us started. This should be quite a week.

And that sharp reaction is all fine and good, but will it sustain? Who knows.

Look at gold... Watch the possible ABCD here, to see if it's a 'W3' or not.

C'mon, Oinker, give it up.

Give it up, Oinker.

Oink. Oink. Oink, oink, oink.

From the Beatles 'Little Piggies':

"Have you seen the little piggies
crawling in the dirt?
And for all the little piggies
life is getting worse,
always having dirt to play around in.

Have you seen the bigger piggies
in their starched white shirts?
You will find the bigger piggies
stirring up the dirt,
always have clean shirts to play around in.

In their styes with all their backing
they don't care what goes on around.
In their eyes there's something lacking
what they need's a damn good whacking..."


Everyone get my 'oinks' now?

Look at that bullish ABCD reaction in gold. It's right at key lines in here. Now we get a clue.

Look at that reaction in gold to those lines! Look at this on a 1-min GLD for you non-futures traders.

Line to line to line to line...

CL 5-min bullish ABCD here at a key .382 and lines. What are the possible issues with this setup?

Right at this second everything looks like they are coming in for it. We'll see if they are back to 'risk on' and the piggie lives another day.

rat, I'm not sure if I defined them in here or not, but the terms I use are in the AFTC book. I follow Miner's convention. I don't use 'extension' as a term at all. We all know what retracements are. 'Internal' means less than 100%, 'external' means greater than 100%. A price projection uses three points, like A, B, and C of an ABCD. It takes the move from points 1 and 2 and multiplies that by a Fib ratio and adds it to point 3, to get point 4. I also use expansion, which is a two point tool, and starts out like a price projection, using points 1 and 2, but after doing the ratio it adds it to point 2 instead of point 3. This is clearly explained in AFTC, with diagrams, so I refer you back to that book.

Originally posted by rat89

Jim, you once clarified the difference between projection and extension here....I can't find it, and I get mixed up in terms....could you point me to it again?