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Registered User
Joined: 6/6/2007
Posts: 4
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I can't figure out the fibonacci lines. I start at the top of the current trend then go back to the beginning of the trend for the end point. When I figure out the numbers for the retracement of 23.6% it should be $30.39. The stock price is at $39.91 None of the retracement lines are even below the $ 30.25 number they are all above it. Duh, what am I doing wrong? Thanks for your time.
Ed
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You want to draw from the start of the last established trend to the end of the last established trend. Fibs are generally not drawn on current trends.
Here is a video to check out: Drawing Trendlines, Regressions and Writing Notes on a chart
- Craig
Here to Help!
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Registered User
Joined: 6/6/2007
Posts: 4
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Craig,
Thanks for the reply,
I took the trend at the top and placed the cross-hairs on the top of the candle shadow and held the mouse and took the line back (like your "help" section shows) to the candle that began the trend. The fibonacci lines all appeared and the first line from the top should show a 23.6% retracement but it's no where near that. A 23.6 retracement should be around the 90 dollar mark and the first fibonacci line is at about 96 or 97 dollars, way too high. The stocks high was about 118 bucks, If I take it down 23.6% it should be around 90 bucks but again it's around 96-97, too high. Your "HELP" section shows that you start at the top of the trend and go backwards in time to the beginning of the trend . Am I doing something wrong. The way you explained it is the opposite of what the "HELP" sections shows. Any help?
Thanks again,
Ed
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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You want to draw from left to right.
Start at the beginning of the trend and stop at the end of the trend.
See how its done at the 7:20 or so mark in this video: Fibonacci Retracement Levels
I just looked it up in the help file. It is labeled wrong. The Start and End points need to be switched in the diagram.
- Craig
Here to Help!
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Registered User
Joined: 6/6/2007
Posts: 4
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Craig
Thanks again,
I've been doing it the way you show on the video. I'm looking at (RIMM) on a daily at shift-6 zoom. The high on Oct 9th was $ 118.80. If I put up the fibonacci lines they don't show the right numbers. For instance, If I go down to the 50% line it should be at $ 59.40 but the 50% line is at $ 90.11, what the...?
Can you spot anything I'm doing wrong? Thanks for your time.
Ed
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Administration
Joined: 9/30/2004
Posts: 9,187
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What's the starting point of the trend you marked with the retracement? If you started at the August low ($66.01) up to the Oct 9th ($118.80) high, a 50% retracement of this move would fall around $90, halfway between 118.80 and 66.01.
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Registered User
Joined: 6/6/2007
Posts: 4
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Craig,
Ok, the moron (me) has it now. I was taking half of the full price of $ 118.80 instead of half of the "move", duh, duh, duh. Thanks again Craig, great job!
Ed
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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I'm glad you got it figured out.
- Craig
Here to Help!
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Registered User
Joined: 11/22/2004
Posts: 6
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Having the Fib lines is a great feature but it gets a little confusing sometimes. First the lines shouldn't be flying off to infinity on left of the first point plotted and perhps even to the right side. I would much rather see the actual % numbers of each line, either by placing the cursor over it or even better in place of the 'infinity' line.
Thanks,
Ken
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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thorken58,
The best place to make suggestions would be the Comments/Suggestions forum. It just won't get seen by the appropriate people if it is made in the Ask a Trainer forum. I would move this topic, but there are other Ask a Trainer related questions and answers in the topic.
-Bruce
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Registered User
Joined: 11/22/2004
Posts: 6
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thank you
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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thorken58,
You're welcome.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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