ES 60 min - Last night, the ES hit resistance and had a sizeable pullback (about 10 points). Using the normal fibonacci retracement method you would select the high and the low and look for a retracement. Below is that chart. Notice the movement didn't quite hit the 52.8% pullback.
If you use the method
described in part 1 and make the fibs "fit" within the past movement as much as possible (see red arrows), the pullback to the 52.8% level was much more exact (blue arrow). If all these major turning points were very exact within these fib lines, one would think that future touches to these and other fib levels would also be much more exact, right? For example, the support at the 0.236 level happening right now.
We apologize if these images are hard to see. We are working on a solution.
Lesson