886 retracement

The 0.886 retracement was conceived through my collaboration with Jim Kane.

Jim Kane slaps his name on this number all over the place. Anyone actually trade from this level? I have not studied it much yet but he makes it sound like he reinvented the wheel by finding this number...

never heard of it, its the 88.8% fib level you mean right?

lbranjord said:

The 0.886 retracement was conceived through my collaboration with Jim Kane.

Jim Kane slaps his name on this number all over the place. Anyone actually trade from this level? I have not studied it much yet but he makes it sound like he reinvented the wheel by finding this number...

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And your point?

So you collaborated with someone on the development of something but haven't studied it yet.

So you both discussed this method of newbie cash extraction down the pub over beer & peanuts and then he went away and wrote the ebook/course and now you are getting all pi$$y about the fact you aren't getting a cut ?

i think what he means is that sometimes price will retrace 38%, sometimes 50%, sometimes 62%, sometimes 88%, or any convenient number in between,
or sometimes not at all,
or sometimes it's not a retracement, but a complete reversal - SIMPLE m8 !!!

DionysusToast said:

So you collaborated with someone on the development of something but haven't studied it yet.

So you both discussed this method of newbie cash extraction down the pub over beer & peanuts and then he went away and wrote the ebook/course and now you are getting all pi$$y about the fact you aren't getting a cut ?

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Nope, that's great for him, just seeing what everyone thinks of it.

lbranjord said:

Nope, that's great for him, just seeing what everyone thinks of it.

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886 has been round for ages, nothing new about this

Ask and there is given:

http://www.886retracement.com/

And from my experience in trading:
I have this number in my Fibonacci measuring tool, why? Couple of reasons:

1.Specific gartley (to 88,6%)
2.Price clusters (especially 78,6 and 88,6 -do your research)
3.Standard HT formations
4.My formation ABCDE http://www.trade2win.com/boards/for.../92176-harmonic-trading-my-abcde-pattern.html

There is big controversy in using this level (88,6), like many years ago, when was 78,6% Fibonacci level. But when you invest your time and look from different point of view (couple years of study), you will see the secret behind HT and this numbers.

Its like Martial Arts and Aikido, people often laughing when they see this art, but after couple of years practise's you finding the secret, Its my experience! This is because of, vibration factor, and you see, there is not so many peoples who can vibrate on this frequency (i mean specific brain wave frequency and mental). So it's hard concept for those who don't understand or misunderstand, but not anymore and never was, because you decide what kinda vibration you choose!

Another words: after some time of tuning yourself to this vibratory level...

This and other forums are for us for sharing purpose. So this is my knowledge from successful experience in martial arts and trading! Enjoy!

if i were looking to, say, buy on a dip, I would probably put a Buy Limit order a few points above the latest Low, in order to catch the turn and get Long.

I mean for Heavens sake,
88.6 is so close to 90% and as near as dammit to 100%, isn't it really just "a few points" away from the previous Low/High ?

hardly any great mystery ?

88.6 and 78.6 are very reliable levels using a momentum indicator along with the fibs. Especially at the open, the deep retracements and double tops/bottoms are a favorite launching pad for the morning session.

lbranjord said:

The 0.886 retracement was conceived through my collaboration with Jim Kane.

Jim Kane slaps his name on this number all over the place. Anyone actually trade from this level? I have not studied it much yet but he makes it sound like he reinvented the wheel by finding this number...

Click to expand...

The fib number .886 does not belong to Jim K. or anyone else. It is the square root of another fib number .786 which is the square root of .618. The Mini S&P bounces off this number quite a bit. To prove this to yourself, take your fib tool, enter this ratio into it and take the 1st leg of the day, using a 1minute or 5 minute chart. Snap a line on the .886 ratio and see for your self how often it will turn right in that area. Now with any of these great fib numbers the market seems to change on these numbers so you have to see whats working in the last 5 days or so. I trade Bonds and the Mini S&P and theres times when the Bonds like this number...Most software has the Fib extention tool so you can put these ratio's in and test them out. One idea is to do the sq. root of all the popular fib numbers and see some of the hidden numbers....Later Birch49

Birch49 said:

The fib number .886 does not belong to Jim K. or anyone else. It is the square root of another fib number .786 which is the square root of .618. The Mini S&P bounces off this number quite a bit. To prove this to yourself, take your fib tool, enter this ratio into it and take the 1st leg of the day, using a 1minute or 5 minute chart. Snap a line on the .886 ratio and see for your self how often it will turn right in that area. Now with any of these great fib numbers the market seems to change on these numbers so you have to see whats working in the last 5 days or so. I trade Bonds and the Mini S&P and theres times when the Bonds like this number...Most software has the Fib extention tool so you can put these ratio's in and test them out. One idea is to do the sq. root of all the popular fib numbers and see some of the hidden numbers....Later Birch49

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On that basis could we take the square root of .886 (i.e. 0.942) and trade off that? Where does it end?

juniorh said:

On that basis could we take the square root of .886 (i.e. 0.942) and trade off that? Where does it end?

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-1 I presume

If one wants to be precise the value is .887. This is obtained from the 4th root of .618 or the square root of .786 rounded to three digits.

For those interested in the origin of this retracement the following articles will be of interest::

The .886 Retracement homepage from Kane Trading - Education for Serious Traders

eSignal Learning: Weekly Trading Article

DionysusToast said:

-1 I presume

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I just had a flash back to o level maths lessons. Recursively finding a square root was almost as much fun as spelling SHELLOIL in upside down letters.

It's true and the number 55378008 on the calculator when turned upside down left us all helpless...(fnar fnar....)

I have no idea what the value of the 0.886 fib is myself having never used it, but it is true to say that if you put enough horizontal lines on a chart price has a greater probability of hitting one or other of them...and when price hits and bounces @ one of them - from time to time, they do seem to come out of the woodwork ... pronouncing that '... life can begin again - we have found the secret....' or other such excitement . Just a general observation - no need for any one to get upset.

Actually I may as well say it - I am no big fan of said 0.886 - I lent it two 0.443's that I didn't get back !

G/L

the hare said:

I just had a flash back to o level maths lessons. Recursively finding a square root was almost as much fun as spelling SHELLOIL in upside down letters.

Click to expand...

the hare said:

I just had a flash back to o level maths lessons. Recursively finding a square root was almost as much fun as spelling SHELLOIL in upside down letters.

Click to expand...

And it's related cousin 7100553