Here's an original Fibonacci study done today on the Dow. I have not seen this idea elsewhere - just to expand the Dow 1929 top from its origin in the first prices available and 1932 bottom in "log Fibs" and see what that gets us. So, I worked this one up this morning and it has some interesting 'hits'. They absolutely are not 'precise', mind you, but they are very much in the neighborhood.
Keep in mind, regardless of the degree symbols used (I just chose these as if I was preliminarily studying any other chart) that the peak RSI is usually on the third-of-three, and the divergence is on five-of-three.
Further, we are up to and slightly past the 2.618 "log" expansion not to mention that price is squeezing out of the upper log trend line, depending on how you draw it (Gulp!).
Have an excellent rest of the weekend,
TraderJoe
Fascinating portrait. It will be quite interesting how Mr. Market responds to the "Working Group"'s attempts to forestall a trip to a 4th wave of 1 lesser degree. Will the path be precipitous? Or protracted? Should be quite fun watching the feathers fly!
ReplyDeleteNice idea and nice work! If this idea stands up, and after we've tagged red 3, alternation says we should expect some sort of long drawn out correction. If its a triangle red 4, the first leg's bottom might be the nominal low. They will throw the kitchen sink at it to keep it afloat. RR's "Inflate or Die".
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