In recent months, I've added the use of my trading. I've found that these amounts are particularly usefull when the match another degree, perhaps support / Resistance or pivot.

I'm trading place cable, using 1 and 5min charts for entries. Looking to trade mainly with the greater time frame trend (30min, 1 hour).

Having read some books / web sites, which frequently disagree, quite a bit, in approach, I've narrowed down my usage to the next. Would be interested to hear remarks:


Levels in order of importance:
1st 50%
2nd 38.2percent and 62.8%
3rd 23.6percent 78.6% (I don't plot these)

Strong trend, expect a gap between 23.6percent and 38.2%

Weaker trend, expect a gap between 50% and 61.8%

Price moving through 61.8 signs a possible reversal

I search to get a confluence of amounts, which should be stronger, compared to singles. For example taking the levels from the lows to 2/3 highs that are different and viewing if some of those amounts are in the exact same zone. By a zone I mean within 5/6 pips.

I like to find out whether a retracement amount is close to some pivot (Pivot, S1 S2, R1, R2) or a support or resistance level. Additionally to confirm with divergence to get an entry.


I've not begun implementing extentions yet, though my basic understanding is:

Weak Trend: Seed move x 1.382 anticipation

Strong Trend: Seed move x 1.628 anticipation