TAILIEUCHUNG - Fibonacci applications and strategies for traders Chapter 8

Tham khảo tài liệu 'fibonacci applications and strategies for traders chapter 8', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 8 Combining Price and Time This chapter analyzes whether signals based on a combination of price and time will make trading safer and more profitable. Timing is the most essential element. What to buy is important when to buy is more important. Investment markets progressively foretell their own future. Observation of waves indicate the next movement of the market by their patterns whose beginning and ending are susceptible to definite and conclusive analysis Elliott p. 84 . As mentioned before there does not seem to be any evidence that Elliott provided mechanical rules to forecast price moves as part of his concept. But by focusing on the Fibonacci ratio it is possible to calculate and forecast price and time goals. Now we will combine them into one analysis. For the purposes of demonstration weekly charts will be used. The same principle can be applied to both daily and intraday data. CONCEPT OF COMBINING PRICE AND TIME Step I. The Correction In this method wave count is disregarded. If there is a minimum swing of for example 10 points in the Deutsch mark 127 128 COMBINING PRICE AND TIME Figure 8-1 62 correction price target. see Figure 8-1 wait for a correction of at least 62 of the total amplitude of the previous swing from point A to B. This technique was described in detail in Chapter 4. Step 2. The Extension Extensions were described in detail in a previous chapter. An extension can be measured in the direction of the main trend by multiplying the total amplitude of wave 1 by as shown in Figure 8 2 the minimum swing size is required or as part of the correction by multiplying the total amplitude of wave a by as in Figure 8-3. Figure 8-2 The end of an extension calculated by using the ratio . CONCEPT OF COMBINING PRICE AND TIME 129 5 b Correction level calculated with the ratio and the amplitude of wave a Figure 8-3 The end of a correction using the ratio and the amplitude of wave a of the correction. Step 3. .

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