Getting us started. This should be quite a week.

Hmmm, nice reaction off that ABCD so far. Another headfake, or could this be the start of the big down everyone is calling for?

Wow, I'm surprised to see this actually selling off that ABCD, but it is very, very cool.

1310 here is the key .447 right at a key line. Does that stop it dead, and start a sharp rise? I'd be shocked if it didn't.

Jim, do you consider any ABCD as a potential trade when BC leg retrace only 0.5 of AB ?

Stopped it dead so far. Sellers, as usual, when given the chance, have nothing.

I like the C point retracement to be at least .486, but preferably deeper. .486 is my usual cutoff. If things are exceptional I will sometimes look at ones with the C point less than .486, but only in very exceptional circumstances (such as all other factors being just fantastic).

Originally posted by sirios

Jim, do you consider any ABCD as a potential trade when BC leg retrace only 0.5 of AB ?

I thought the most probable ABCD's are when BC leg retrace 0,618 - 0,786 of AB leg and I'm only looking for such ABCDs. Do you take ABCD with less then 0.618 replacement as normal or it is rather exceptions with many additional conditions ?

Originally posted by jimkane

I like the C point retracement to be at least .486, but preferably deeper. .486 is my usual cutoff. If things are exceptional I will sometimes look at ones with the C point less than .486, but only in very exceptional circumstances (such as all other factors being just fantastic).

Originally posted by sirios

Jim, do you consider any ABCD as a potential trade when BC leg retrace only 0.5 of AB ?

Everything down to .486 I consider 'normal' and need no special conditions. I have not noticed any less likelihood of those playing out than ones at .618-.786, based on my experience.

Originally posted by sirios

I thought the most probable ABCD's are when BC leg retrace 0,618 - 0,786 of AB leg and I'm only looking for such ABCDs. Do you take ABCD with less then 0.618 replacement as normal or it is rather exceptions with many additional conditions ?

Originally posted by jimkane

I like the C point retracement to be at least .486, but preferably deeper. .486 is my usual cutoff. If things are exceptional I will sometimes look at ones with the C point less than .486, but only in very exceptional circumstances (such as all other factors being just fantastic).

Originally posted by sirios

Jim, do you consider any ABCD as a potential trade when BC leg retrace only 0.5 of AB ?

Thank you, Jim.

No problem, sirios.

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?