OptionsXpress and Java offer a charting tool called Fibo-Gann
projections. I've never seen it on a Java chart anywhere but on OX,
but there it is.
Since you guys are big Fibonacci fans, as am I, maybe you can
help me decipher these projections, which seem to show where prices
are headed according to various Fibonacci counts.
I've asked both OX and Java to explain the tool to me and
neither has been able to. So, I'm hoping you can.
What's perplexing is that the projections are color-coded. Red,
green, yellow and blue. Red and green seem pretty obvious -- stop
and go -- but I am mystified as to the implications of yellow and
blue. Yellow probably means caution, but why? And blue looks to me
like nothing more than the previous day's close.
I don't understand how Gann's work figures into this. Can anyone
enlighten me? Many thanks!
Here's how to read Fibo-Gann. Apply a Fibonacci or Gann fan to a
Fibonacci chart. Pick an obvious turning point such as a 52-week
high or low. See how the fan corresponds to later price turns. This
takes a little shucking and jiving until you see the fan blades
line up with price turns, but if you get it to a point that seems
to make sense, the Fibo-Gann projection should show you where
prices are headed. If you go long or short on the basis of this
projection, the target prices will tell you where, more or
less, to take profits.
Fibo-Gann
Posted by druck on 3rd of Apr 2009 at 10:41 am
OptionsXpress and Java offer a charting tool called Fibo-Gann projections. I've never seen it on a Java chart anywhere but on OX, but there it is.
Since you guys are big Fibonacci fans, as am I, maybe you can help me decipher these projections, which seem to show where prices are headed according to various Fibonacci counts.
I've asked both OX and Java to explain the tool to me and neither has been able to. So, I'm hoping you can.
What's perplexing is that the projections are color-coded. Red, green, yellow and blue. Red and green seem pretty obvious -- stop and go -- but I am mystified as to the implications of yellow and blue. Yellow probably means caution, but why? And blue looks to me like nothing more than the previous day's close.
I don't understand how Gann's work figures into this. Can anyone enlighten me? Many thanks!
The answer!
Posted by druck on 3rd of Apr 2009 at 03:47 pm
Here's how to read Fibo-Gann. Apply a Fibonacci or Gann fan to a Fibonacci chart. Pick an obvious turning point such as a 52-week high or low. See how the fan corresponds to later price turns. This takes a little shucking and jiving until you see the fan blades line up with price turns, but if you get it to a point that seems to make sense, the Fibo-Gann projection should show you where prices are headed. If you go long or short on the basis of this projection, the target prices will tell you where, more or less, to take profits.
druck , can I view
Posted by averageguy on 3rd of Apr 2009 at 10:50 am
druck , can I view this indicator somewhere . Ed