That’s the opposite of what you said in your previous post. In that post, you said you pulled a fib from high to low.
And, in fact, that’s what your screen-shot shows — a fib pulled from high to low.
Do you realize that you are drawing your fibs in the wrong direction?
Your fib should have been drawn this way, from LOW (100% retracement) to HIGH (0% retracement):
Drawing your fib in the correct way, there is no OTE.
That’s why I was confused about what you posted.
Yeah, I always found fibs confusing until just now. Thanks, Clint.
So, there was no “official OTE” last night. I remain confused by the original post I quoted, specifically the bolded part.
Maybe a chart would’ve helped me visualize this better.
UPDATE:
I posted the “implied OTE” myself when asking Clint which chart accurately reflected his post. It slipped through the 50% retracement at 2 AM EST (10/12). It did reach around 79% during last quarter of the Asian session (9:25 PM, 10/11). Am I understanding this right? Can an OTE form during the Asian session for the next London open?
The Fiber retraced to the 50% level, and was very close to the Weekly MR3 for support. The Cable had a deeper retracement shortly after LO. But you can take this for what it’s worth as I don’t trade the LO. One thing I have noticed trading the LC, is that Fiber likes to move off that 50% retracement level more often than the Cable
Would you like to see the technicals that did unfold last night in video?
ICT,
Always, would be much appreciated…
Yes, please. Particularly, if the technical analysis involved fib retracements (now that I understand how to draw them!). I’m not always certain when drawing the line from the daily highs and lows is more or less consistent than drawing the line from [I]specific session[/I] highs and lows.
Y
Yep I would cos I got today wrong to.
You’re right — a chart would have been helpful.
Apparently, hiivah was referring to the region inside the yellow ellipse —
Here’s the same region enlarged, with a fib drawn to show the OTE which he referred to as “barely” —
Yes please ICT.That would be great
Yes, please.
So, this is the next question about fib retracements I’m struggling with. Why draw the fib from the high at 1:45 AM to the low at 12:55 AM as opposed to drawing the fib from the high of the previous day to the low of the previous day?
PIPS,
what I did when I was learning how to draw fibs was drawing fibs on past highs, lows, and swing highs and lows in between to see what price did next. It might help to look at daily, 4h, 1hr & 15min charts, put fibs all over and just test out this newfound tool. It’s difficult on a current live price, but it may help give you an idea of where they should be
My take on what happened yesterday: We are now in a buy program and the action is strongly pushing up on the Fiber Daily chart. Before yesterday’s action there was a very clean line that can visibly be seen on H4. That level is 1.3680. This level was created at the end of September, and is the top of the dealing range. When such a clean line exists, you should be looking for it to be taken out. Well if you go back to the 19th and 20th September you can see support at 1.3580 that price is likely to use to push off and gun the clean resistance line. So the real entry was in Asia yesterday. 1.3580 was S1 on the GMT pivots (you should be using these in Asia session), and it just pushed through the 79% retracement from previous day’s low to high which was at 1.3590. What happened on Oct 11th with the consolidation day? Well consolidations like that happen just before highs are taken out. I think ICT attributed it to pairing orders before gunning the highs (??)
Regards
I have my pivots set on GMT (I believe) and my S1 is showing it on 1.3570? Would you care to post a screenshot so maybe I can compare?
Read the part of your question in [B]bold type,[/B] above. Once again, you’re drawing your fib in the wrong direction.
You are talking about pulling a fib backward in time, and opposite to the direction of the price move.
You must always pull (draw) your fib in the direction of price movement. If price moves UP from a short-term low at A, to a short-term high at B, then you would pull your fib UP from A to B. If price moves DOWN from A to B, then you would pull your fib DOWN from A to B.
In the case of the fib in my previous post, it was pulled (drawn) from approximately 1.3611 (at 12:55am) to approximately 1.3641 (at 1:30am).
Regarding the second half of your question (drawing the fib from the high of the previous day to the low of the previous day), if the “previous day” that you’re talking about is Tuesday, October 11, then — again — you’re doing fibs backward. The low of the day occurred BEFORE the high of the day. So, you must draw your fib from low to high.
Try doing a search here on Babypips, or on Investopedia, for a good tutorial on how to draw and use Fibonacci retracement levels.
No two brokers are likely to produce exactly the same pivots. If it is within 10 pips of the area that you are seeing other confluences then you are good to go. Here is the screen shot you requested.
Thanks for that screenshot. I had my pivots set at 0 and if I changed it to 1 it looks just like yours. If I had it set to 0 the pivots were 20 pips away which would of been to far for confluence.
Looking at the new settings on the Pivots I can see if I pull a fib from NY Session low to high on GBP\USD we are in a Classic Asian Session Buy.
Price came down to R3 and bounced off of it 20+ pips and then came down forming a OTE on the 5m chart. This also confluences with the 20 level.
I would appreciate comments on this to see if I am correct.
Thanks,
Very lucid presentation. I understand drawing fibs now. Thank you, Clint. Thank you, ICT.
