A LEADING Indicator Resource

[TS Hennessy]

A LEADING Indicator Resource

Here is a resource which has been recently introduced
which may assist you. One of the biggest questions
traders want answered once they spy a trade is, 'How
far will it run?'

The resource to which I am referring is called,
"Fibonacci Price Projections – Correct Calculation and Application"

In this eBook the experts at PriceMasterPro.com will
shed light on the subject and provide you with simple
to understand basic information on how to PROPERLY
calculate and apply the Fibonacci price projections
in the same fashion as professionals do.

You will need to download this from the member's
area and they have a free membership so you can
get it easily by signing up here:
Price Master Pro Free Membership

I know you will find it very educational and useful in
your daily trade decision making. Combining this info
will also force you to look into the future and set your
price targets more accurately.

Tom

[theoryman]

Some of you already know that I have been using these ideas for quite some time now, as part of my probability based approach to EWT.

I spotted a mistake on Page 8 in the original ebook, which might have thrown some newcomers off track. This has now been corrected in Ver 1.1, so if you have Ver 1 please get rid and download the replacement.

It won't come as a surprise that I use colour to link the wave being used, to the Fib overlay generated from it - particularly when introducing it.

I have passed this idea on to "pip" and he hopes to introduce it in Ver 2, along with some extras (top secret ).

If anyone wants to see how I use colour, I have an EWT Fib chart which I used as part of the Euro/£ analysis; which I am willing to share.

Otherwise I agree with Tom, this approach is IMHO a very useful addition to the armoury. If you haven't got the time/skill to produce your own software then it is well worth considering. Try it and see.....

cheers theory

[finster869]

Theory- I'd be interested in seeing your chart.

[theoryman]

Finster,

   

Retracement by wave 2 is based on wave 1 (red), hence 50% Fib going down level is in red.

Wave 3 possible end is also based on wave 1 (red) but going up - just over 261.8% red.

Wave 3 (green) is used to identify retracement by 4th, 38.2% going down in green.

Final 5th is based on two waves, Wave 3 (green) and Wave 4 (purple).
61.8% in green and 200% purple.

I prefer to include the 0% line every time because it shows me where the Fib overlay is being applied from.

Sometimes you can have three or more waves being used to identify possible endings of another one. By colour coding the wave they are based on, you can choose to ignore the colours when the levels cluster close together OR place more emphasis on one when they don't.

As the wave pattern develops there are more and more possible Fib levels, based on various data that is available. In particular my Wave 5 projections have 19 possible outcomes and things can get a bit visually overwhelming if you aren't careful!

So in this case when looking at a wave 5, I might want to see the Fib ratios based on Wave 2 and Wave 4 but I really want to place more emphasis on those from Wave 3, Wave1 or Wave 123. So the less important ones could be in feint and the others in double bold etc....

The combined use of colour and 0% line, certainly help many people grasp the concept quicker but they are not an essential component. I would however suggest, that using them with the Alternate case outlined in the ebook, would benefit the vast majority of learners.

cheers theory