Jump to content

The 88.6% Fib retracement.

Recommended Posts

Ex-poster Mercury used a 88.6% retracement level in his charts and I was wondering where that came from (had never encountered it before, not even in the Elliot Wave Principle book by Prechter and Frost).

This is a good article on Fibs in general and he goes into specifics about 88.6% further down.  https://www.dailyforex.com/forex-articles/2011/05/fibonacci-and-forex-ratios-and-retracements/7850


Personally, I have often seen 88.6% being a valid reversal point.


Edited by dmedin
Link to comment
15 hours ago, dmedin said:

Personally, I have often seen 88.6% being a valid reversal point.

I've seen a few people point this out before over the years, Elliott wavers and non EWTers.  To my mind it's really just near a full retracement and price is closing in on a zone where there was previous big buying (institutional) and very possibly unfilled institutional orders are still sitting waiting and so setting up for a new round of buying and a subsequent reversal.

The mechanics don't really matter so much as to know to keep an eye out.

  • Like 1
Link to comment

Its like most fib levels - misused and misunderstood - it does not have any special powers or reversal qualities - I did a manual study of fib levels back in 2010 and 2 other levels between 0-100% had more reversal turns than the infamous fib levels

Those levels were 41% which is the inverse of square root of 2 and the 50% level which is a Gann Level not anything to do with Fib 

That being said markets grow/contract with a connection to fib maths (big swings), but knowing which ratio or level in advance is 100% impossible

  • Like 1
Link to comment
  • 2 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Posts

    • Sainsburys full year earnings and Unilever’s first quarter trading update both say the same thing, UK consumers are in for higher prices. The war in Ukraine, supply chain issues and the effects of ongoing Covid all to blame.      
    • US Dollar (DXY) Daily Price and Analysis US Q1 GDP may stall the greenback’s advance. A 20-year high nears for the US dollar. The multi-month US dollar rally continues with the greenback printing a fresh high today ahead of the first look at US Q1 GDP at 12.30 GMT. The US dollar basket (DXY) has been boosted by renewed weakness in the Euro and the Japanese Yen, as investors move from lower-yielding to higher-yielding currencies, while safe-haven flows continue to benefit the greenback. The US growth release later in the session is expected to show a sharp slowdown from the robust Q4 figure of 6.9%. The markets are currently pricing in growth of just 1% for the first three months of this year, with the slowdown mainly due to a reduction in inventory accrual over the quarter. This release is unlikely to move the greenback, unless there is a large miss or beat, as the Fed believe that 2022 US growth will be robust enough to let them tighten monetary policy sharply without damaging the economy. The latest US Core PCE data – the Fed’s preferred inflation reading – is released on Friday and this may have more effect on the US dollar than today’s GDP data. For all market moving economic data and events, see the DailyFX Calendar. The ongoing US dollar rally has been aided by weakness across a range of G7 currencies including the Euro, the Japanese Yen, and the British Pound. The Euro continues to battle with lowly growth expectations, exacerbated by energy concerns, the British Pound is mired by weak economic data, while the Japanese Yen is in freefall as the BoJ continues with its ultra-loose monetary policy.   The US dollar continues to press higher and looks set to break above 103.96, the March 2020 high. Above here the US dollar would be back at levels last seen nearly two decades ago. The March resistance will likely hold in the short-term, especially with month-end portfolio rebalancing at the end of the week, but US dollar strength is set to continue in the months ahead. USDOLLAR (DXY) WEEKLY PRICE CHART – APRIL 28, 2022 {{THE_FUNDAMENTALS_OF_BREAKOUT_TRADING}} What is your view on the US Dollar – bullish or bearish?   Apr 28, 2022 | DailyFX Nick Cawley, Strategist
    • While Tesla has nothing directly to do with Elon Musk buying Twitter - TSLA stock closed down 12% on news that Musk may have to sell stock and use other holdings to stand against the loan to finalise the purchase of the social media giant.        
  • Create New...