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.
Showing posts with label fibonacci levels. Show all posts
Showing posts with label fibonacci levels. Show all posts
Thursday, January 20, 2011
How to Use Fibonacci Levels in Joe DiNapoli Style
How to Use Fibonacci Levels in Joe 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
AUD/USD | Elliott Wave Count | Fibonacci Levels | 20 January 2011
AUD/USD | Elliott Wave Count | Fibonacci Levels | 20 January 2011
Assuming that the medium term trend is up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero level. The Oscillator is now below the zero and has already crossed it once. The level to watch for long positions is 0.9940-39.
more AUD/USD Technical Analysis
The AUD/USD is developing corrective wave B of medium term uptrend - colored magenta in the chart. The targets of the corrective downwave are Fibonacci retracements of 0.9803-1.0076, 0.9855-1.0076.
Supports:
- 0.9940-39 = confluence area of .618 and .50 retracements
- 0.9907 = .618 retracement
If the uptrend continues and the price breaks above 1.0076 the nearest resistances will be Fibonacci retracements of 1.0255-0.9803.
Resistances:
- 1.0082 = .618 retracement
- 1.0148 = .764 retracement
Overbought/Oversold
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