Criticial Points
Fibonacci retracement numbers: 1,2,3,5,8,13,21,34,55,89,144,233,377
I was using 34,55,89,144,and sometimes 233.
There is one critical number that you start with and then you do the math.
Example: USD/CHF 12800+34=12834, 12800+55=12855 etc.
12800-34=12766, 12800-55=12745 etc.
This is how you arrive at the starting point using two moving average lines.
Set "moving average exponential" to 144, the second to 169. These lines can
be very close togather or 15 pips apart. Lets say you are looking at the
EUR/USD chart, and you have your MAE lines on it. It best to average the two
price numbers at the end of each line.
Example: Top line is 12150 (use the end of the line)
Bottom line is 12138
Use 12144.
12144-34=12110, 12144-55=12089, etc.
**** If the price moves above/below these lines, its time to recalculate.
**** Very often the price will aproach and bounce off the closest 144 or 169
line.
**** Heres something that you will want to monitor. Add a third MAE and set at
12. When all three lines meet, the possibility of a very strong move is eminent.
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