Senior Analyst Jeffrey Kennedy talks about a technique he has been using for over a decade, such as Halliburton stock.
Most traders who use Elliott understand that Fibonacci numbers can enhance their analysis on any timeframe, perhaps like yours?
If so, you probably know that Fibonacci retracements and extensions can help determine the depth of corrective waves and how far an impulse wave can travel. After all, the Fibonacci sequence is the mathematical basis of the wave principle: the Elliott method often distinguishes between these "golden" ratios and ratios.
Jeffrey Kennedy, editor of our video education service Trader's Classroom, shares his impressions of every aspect of technical trading 3-5 times a week. The following text is taken from his tutorial.
In the Halliburton chart, you can see how the Reverse Fibonacci method works: Kennedy focuses on the previous (reverse) move. It measures the depth of wave 4, multiplies it by 1.382 and then projects it up:
Standard method”is highlighted in blue, the inverse Fibonacci method is highlighted in red.
This unique technique is just one of the many useful tools that Kennedy uses to assess markets.
Author: Jill Noble
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