Fibonacci Time
Retracement
for DIA
The AMEX Diamonds (Dow Jones
Industrial Average tracking stock) makes an almost perfect 100% time
retracement.
From the December 2002 low to
the March 12th, 2003 low, the DIA tops out almost exactly 100% way in time
from that downswing (actual high was 17 June 2003 - within one day of a
predicted high based on Fibonacci retracements).
Zooming in on the price action
at the 100% retracement level shows the stock not really doing much after
that high.
Sure the stock dropped ... but
not much. Even though Fibonacci anticipates possible turning points
in price and time, you still need the price action to follow through.
Traders who sold short below the reversal bar's low would either have been
stopped out with a small profit or breakeven.
Recommended  Stephen Pierce's Fibonacci Secrets - a step by step blueprint to understanding the proper applications of Fibonacci to your trading. The course includes the Fibonacci Chart Book, the 4-point Fibonacci Trading Formula, Fibonacci tutorial videos (several hours), the Focus Point Fibonacci Trading method.
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