Fibonacci Query

[mik1973]

Having read a number of technical books i thought i could understand the basics of Fibonacci ratios. However, having read www.enthios.com/FibonacciPrimer.htm i have doubts as to whether there is some kind of conflict how these ratios should be recorded. Murphy et al record the ratio changes reading from highest figure (ie 62%)at the bottom working thru to 50 % then on and UP to 38%. The author of the site listed above records the figures in the opposite direction ie recording 38% at the bottom then to 50 and on to 62%. The author also uses abbreviated terms such as MSH-MSL- any ideas what these stand for ?
Thx in advance
Mick

 

[Skimbleshanks]

MSH = market swing high
MSL = market swing low

 

[mik1973]

Thx Skim
Can't belive i couldn't work that one out!
You can all stop laughing now!

 

[Salty Gibbon]

Sweet chariot...................

 

[Skimbleshanks]

I pondered on it ages ago, and couldn't find out what it meant - then I finally found it somewhere on the notes accompanying those charts.

When I saw your question I knew why you'd asked it. It's just your lucky day that my brain cells managed to recall the answer! LOL

 

[mik1973]

Hi Skim,
If you've read the notes from the above site have you any idea why the author has recorded the figures from lowest to highest - (rather than highest to lowest - as per murphy et al) .
The more i read my own posts regarding this topic the more confused i seem to be getting. Could you let me know if my query is making any sense!
Cheers
Mick

 

[Skimbleshanks]

I don't have a clue I'm afraid. When I said I read the notes, I was lying. I sort-of flicked through them, and I'm desperately trying not to say I skimmed through them.

I now tend to switch off when it comes to fibonacci because I don't use them, although I did ages ago.

 

[mik1973]

No worries Skim-
Thanx for being honest!

 

[Selbats]

Mik1973

The charts you refer to are for price extensions rather than price retracements

 

[ColinRiche]

Its just a matter of whether you draw the line from top to bottom
or from bottom to top - whether the 100% is at the top or bottom

If you look carefully you will see that Fib numbers are interchangable....

100% - 38.2% = 61.8%
100% - 23.6% = 76.4%

How you draw the lines is dependent on whether you are drawing retracements from a rise or a fall
.

 

[mik1973]

Selbats/ColinRichie,
Thx for your replies- i guess i was trying to read too much into this - thinking there could only be one standard.
Cheers,
Mick