8 out of 10 Times the fifth wave finishes between Target Zone 1 and Target Zone Two. As Shown in the picture below.
This is Fib Expansion tool. To modify the default settings use the settings as shown in the chart. By doing so we Rename the default FE 61.8 to TZ1 and FE 100 to TZ2, as shown. The @ %$ is code that shows the price on the Fib Exp lines as shown. Now One can use the TZ1 and TZ2 as 'Take Profit Points'
FIB Expansion Tool for Setting Target Areas
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immy
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FIB Expansion Tool for Setting Target Areas
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Last edited by immy on 15 Dec 2011, 08:51, edited 1 time in total.
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
-
immy
- Founder
- Posts: 9654
- Joined: 22 Nov 2010, 16:46
- 14
Re: FIB Expansion Tool for Setting Target Areas
here is an example!
You do not have the required permissions to view the files attached to this post.
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
-
Den
- Free Member
- Posts: 75
- Joined: 06 Dec 2011, 08:40
- 13
Re: FIB Expansion Tool for Setting Target Areas
I have only ever used the fib retracement tool. With the Expansion tool Am I right in saying you wipe the 5 min AIMS to get the targets. So if you are going long you wipe it upwards and the reverse for short ? It doesnt seem to be working so I am obviously doing something wrong can some one direct me Please? 
Consolidation periods are quicksand for suckers.
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immy
- Founder
- Posts: 9654
- Joined: 22 Nov 2010, 16:46
- 14
Re: FIB Expansion Tool for Setting Target Areas
Hi
Note: If you're allergic to Elliott Wave look away now
)
Assuming you know how to count Elliott wave within 10 seconds. We must first understand the concept and main reason for using this tool. (The book is in the premium section)
The concept is that we Identify third wave by looking at Peak of AO and an Open Alligator. If AO has peaks nicely with considerable amount of move in pips lets say over at least 30-40 pips we consider that as probably third wave based on our un-grounded Elliott Wave Count. So whenever a Wave 3 is confirmed by a Peak of AO and we are looking to trade into the fifth wave and it goes without saying that no matter what our perspective on the Wave count we must always, in fact the only way we get in to a trade is using either Setup 1 or 2, we assume that we have seen 3rd wave and want to trade again based on our 'Ungrounded assessment' that 5th wave might be round the corner. Using our 'Grounded Assessment' that is the Setup we may enter a trade. To predict, or lets say, have an idea of where we might be getting out of a trade we can use the Fib Expansion. Why?
Reason: 8 out of 10 times the 5th wave ends between FE 1.62 and FE 100. This means that the 5th wave is 80% of the time around 60% to 100% as long/big as the previous 3rd wave.
What if price continues to go past the 100%?
When the price goes over the FE100 AO may also create a new peak (Peak higher/lower than previous peak). The previous peak is the one based on which we had assumed that we had seen a third wave. If in case the wave goes over the 100% i.e. FE100, we might have got the count wrong (which is never correct anyway hence we call it ungrounded) and we may quickly change our perspective, adapt to the current situation, staying in the now, and may assume that "What we thought was a third wave, was actually something else, and now that we have a new peak of AO then we may assume, ungrounded, that we have just entered a fresh third wave. Which means we may wait for another fifth wave yet again.
Another use of Fib Exp is that if you were to know the first and 2nd wave i.e. in most cases around Setup 1 and Setup 2, you could plot FIB and find the most probably spot for the upcoming third wave. We dont always do this but in most cases I do plot FE for Target Zone 1 (FE 0.62) and Target Zone 2 (100) after what I think is a third wave. This boosts my confidence for taking a trade and makes it more enjoyable. When it does not do what I thought it would do, I say, Oh Well, next, when it unfolds exactly as I thought it would I say wooohooo that was nice, next.
I hope this helps
cheers
Immy
ps: i have not re-read so sorry for mistakes. may re-read later. Gotta run now
Note: If you're allergic to Elliott Wave look away now
) Assuming you know how to count Elliott wave within 10 seconds. We must first understand the concept and main reason for using this tool. (The book is in the premium section)
The concept is that we Identify third wave by looking at Peak of AO and an Open Alligator. If AO has peaks nicely with considerable amount of move in pips lets say over at least 30-40 pips we consider that as probably third wave based on our un-grounded Elliott Wave Count. So whenever a Wave 3 is confirmed by a Peak of AO and we are looking to trade into the fifth wave and it goes without saying that no matter what our perspective on the Wave count we must always, in fact the only way we get in to a trade is using either Setup 1 or 2, we assume that we have seen 3rd wave and want to trade again based on our 'Ungrounded assessment' that 5th wave might be round the corner. Using our 'Grounded Assessment' that is the Setup we may enter a trade. To predict, or lets say, have an idea of where we might be getting out of a trade we can use the Fib Expansion. Why?
Reason: 8 out of 10 times the 5th wave ends between FE 1.62 and FE 100. This means that the 5th wave is 80% of the time around 60% to 100% as long/big as the previous 3rd wave.
What if price continues to go past the 100%?
When the price goes over the FE100 AO may also create a new peak (Peak higher/lower than previous peak). The previous peak is the one based on which we had assumed that we had seen a third wave. If in case the wave goes over the 100% i.e. FE100, we might have got the count wrong (which is never correct anyway hence we call it ungrounded) and we may quickly change our perspective, adapt to the current situation, staying in the now, and may assume that "What we thought was a third wave, was actually something else, and now that we have a new peak of AO then we may assume, ungrounded, that we have just entered a fresh third wave. Which means we may wait for another fifth wave yet again.
Another use of Fib Exp is that if you were to know the first and 2nd wave i.e. in most cases around Setup 1 and Setup 2, you could plot FIB and find the most probably spot for the upcoming third wave. We dont always do this but in most cases I do plot FE for Target Zone 1 (FE 0.62) and Target Zone 2 (100) after what I think is a third wave. This boosts my confidence for taking a trade and makes it more enjoyable. When it does not do what I thought it would do, I say, Oh Well, next, when it unfolds exactly as I thought it would I say wooohooo that was nice, next.
I hope this helps
cheers
Immy
ps: i have not re-read so sorry for mistakes. may re-read later. Gotta run now
What is the Secret of Successful Trading?
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
The Consistent Pursuit of DS1
The thing that makes me money in trading is when I "Objectively Follow my Trading Plan".
I understand that I can't catch all the moves or all the signals but my objective is to catch THE VALID SIGNALS & ONLY the Valid Signals.
My Deathbed Advice "5:1 Reward to Risk Ratio".
Yo, banana boy!
-
Den
- Free Member
- Posts: 75
- Joined: 06 Dec 2011, 08:40
- 13
Re: FIB Expansion Tool for Setting Target Areas
Thank you for your great answer and time, much appreciated
Consolidation periods are quicksand for suckers.
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pinnedacier
- Posts: 17
- Joined: 21 Aug 2011, 21:10
- 14
Re: FIB Expansion Tool for Setting Target Areas
Hello there!!!
I amnew in using Fid Expansion.
Could you let me know how to use it or where is it explained in the Forum.
Many thanks and Cheers
Jean / pinnedacier (hug)
I amnew in using Fid Expansion.
Could you let me know how to use it or where is it explained in the Forum.
Many thanks and Cheers
Jean / pinnedacier (hug)
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baldeagle
- AIMSter
- Posts: 119
- Joined: 28 Aug 2015, 17:21
- 10
Re: FIB Expansion Tool for Setting Target Areas
I am trying to find a video about Fib Expansions that Immy mentions in one of his posts. Does anyone know where I can find it??
Thanks,
Ed Abbott
Thanks,
Ed Abbott
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Hill
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baldeagle
- AIMSter
- Posts: 119
- Joined: 28 Aug 2015, 17:21
- 10
Re: FIB Expansion Tool for Setting Target Areas
Thanks. I appreciate it. It looks like a short video so I guess I can watch it several times! Are there any other videos on the subject that you recommend?
Ed
Ed
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Hill
- AIMSter
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Re: FIB Expansion Tool for Setting Target Areas
Look under Video Tutorials section. All are good ones.
especially, one can spend countless hours to understand market Or simply spend few mins in watching this.
Immy did a superb job and his own way of explaining with ease and simple approach.
especially, one can spend countless hours to understand market Or simply spend few mins in watching this.
Immy did a superb job and his own way of explaining with ease and simple approach.