GKP

I for one appreciate your posts F4T and hope you'll stick around. It's always great to get debate and different view points, observing the individual TA styles from you very knowledgeable guys.

all the best

ah thanks... thought I recognized the style and glad to know as difficult as GKP is to read you usually got it right

Hi Diver, I was just looking at your chart this morning in a bit more detail and I'm wondering if you could just clarify something for me. Your latest fib chart has the 0% at the bottom of wave b at 78.25 and the 100% retracement at 95.00 and therefore the extensions at 99.55 and 105.35, why 95 as the 100% I cant quite see where the 95 comes from.

Thanks for your help and how's your golf recently

Forget that Diver I've just had another look and confirmed what time you posted so I presume the close on the 26th (95) was your guideline, what was confusing me was the candle that followed afterwards on your chart, anyway based now on what happened yesterday would you revise that fib chart at all as Im wondering if the first hours action could have been wave iv in your opinion,

Cheers

SRB,
What you are looking at is a Fibonacci Extension as opposed to a Fib Retrace, and this attempts to give guidance as to the construction of the upcoming wave. This particular extension starts from the low at 72.25, up to the high at 89.00, then down to the low at 78.25. The 100% you see is generated by the chart and is a duplication of the pips from said low at 72.25, to 89.00, but starting from the low at 78.25.
Why bother with the extension? Well the formation of the wave gives guidance as to what we can expect next. A wave 3 needs at least 161.8% extension of wave 1, starting from the bottom of wave 2. If the wave does not achieve this it is probably an ABC correction.
In this instance we have already achieved 161.8%. So things are looking good for an impulsive 5 way move.
Wave 4 normally retraces between 23.6 > 38.2% of wave 3. GKP retraced to 97.25, an almost perfect 38.2%.
Wave 5 can be many things A duplication of wave 1. So that would be the ‘low at 72.25, up to the high at 89.00,’ which would result in wave 5 terminating at 114.02. It could also be a 61.8% of wave 1 thru 3. So, 61.8% of 72.25 > 108.50, resulting in wave 5 finishing at 119.70. It could also be a 161.8% extension of wave 4 resulting in wave 5 finishing at 115.45.
Apologies for not posting a chart with all the possible wave 5 endings but it's all rather messy and would only confuse. Better you produce it for yourself then you can see things clearly as you proceed.
To confirm the impulse we also need a divergence on the RSI between waves 3 and 5, i.e. the RSI at the top of wave 3 is higher than that at the top of wave 5. This reflects the dropping in bullish interest you would expect after the initial onslaught of a wave 3.
The thing to remember in this instance is, this is just an hourly chart and, as such, is of more interest to intraday traders than investors. However, the same disciplines apply in whatever timeframe you are trading in so all the above is relevant.
Sir Richard, if all the above is ‘teaching granny how to suck eggs’ I do apologise, however maybe it will be of some use to others.

The golf…… the wretched game! How it has the ability to grab you and reel you in I know not….but I’m hooked, and have been for many a year. Sad isn’t it! It’s actually very similar to trading in that, the more you learn the more realise you know very little. Ce sera huh!
Keep smiling. It’s the only answer

Diver, your a star and thank you for taking the time to explain that so well, excellent. I have produced the wave 5 possibilities' on a chart and I also found the RSI divergence requirements between waves 3 and 5 something I never knew so thanks again.

Maybe one day we could have the chartsview pro-am and have that round together would look forward to that.

Thanks again much appreciated.