in the school of pipsology, it talks about using fib retracement levels with abcd and Gartley. I dont get how to apply the fib retracement levels there .
For example on The Gartley and the animals, It say that "Move AB should be the .618 retracement of move XA."
How do i put the fib retracement on my chart . do i drag the cursor from x till a or vice versa?
And i dont have the 1.272 level on my fib retracement tool what should i do?
Pull your fibs (or, as you say, drag your cursor) [B]in the direction that price moved. [/B]
On the Gartley pattern you referred to, price moved from [B]x[/B] to [B]a[/B], then from [B]a[/B] to [B]b[/B].
Pull a fib from [B]x[/B] to [B]a[/B], and you will see that the price level of [B]a[/B] corresponds to 0% retracement, and the price level of [B]x[/B] corresponds to 100% retracement. These percentages should make perfect sense to you. If they don’t, go back and re-study the concept of retracement.
Depending on the trading platform and charting package you are using, you should be able to go into the settings for your fib tool, and add the fibonacci extensions.