Friday, March 16, 2012

Market geometry at work

Here is a good example of Fibonacci ratios at work in the currency market.  The first pattern on the left is a Gartley pattern showing A-C swing as a .618 retrace and the X-A swing as a .786 retrace.  The next pattern is the large AB=CD and you can see that the price action turned within 12 pips of the projected completion at D. The third pattern is another Gartley this time showing a projection to the completion point of a small AB=CD at a .618 retrace of the previous swing.

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