Criticial Points


Fibonacci retracement numbers: 1,2,3,5,8,13,21,34,55,89,144,233,377

I was using 34,55,89,144,and sometimes 233.

There is one critical number that you start with and then you do the math. 


Example: USD/CHF   12800+34=12834, 12800+55=12855 etc.

                   12800-34=12766, 12800-55=12745 etc. 


This is how you arrive at the starting point using two moving average lines.

Set "moving average exponential" to 144, the second to 169. These lines can

be very close togather or 15 pips apart. Lets say you are looking at the 

EUR/USD chart, and you have your MAE lines on it. It best to average the two

price numbers at the end of each line.


Example:  Top line is 12150 (use the end of the line)

       Bottom line is 12138

       Use 12144.

     12144-34=12110, 12144-55=12089, etc.

**** If the price moves above/below these lines, its time to recalculate.

**** Very often the price will aproach and bounce off the closest 144 or 169
     
     line.

**** Heres something that you will want to monitor. Add a third MAE and set at 

     12. When all three lines meet, the possibility of a very strong move is eminent.

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