Thursday, January 20, 2011

How to Use Fibonacci Levels in Joe DiNapoli Style

How to Use Fibonacci Levels in Joe DiNapoli Style

Fibonacci retracements and expansions in Joe DiNapoli style, or simply – DiNapoli levels, should be considered as a whole system. Neither element can be viewed in isolation. Below is a concise summary of how to use Fibonacci levels in trading in DiNapoli style.

Of all the available retracement levels (.236, .382, .50, .618, .764) J. DiNapoli has chosen only 2 – .382 and .618. In my opinion the choice is such because the two levels are used for entries, and it doesn’t matter which one you enter at – 61.8% or 76.4% - in both cases your protective stop will rest below/above the beginning of the wave (or the reaction). You can see how the corrective fib-nodes look like on Fig.1. And knowing DiNapoli entry techniques these two levels are more than enough. Read more