Hubert Senters here.
Got some more questions from viewers in today’s video. This question is from Sudha.
Hi Hubert,
I like your sense of humour. Anyway, when you’re looking at resistance using Fib you always look at 161. Can you tell me why you use that number? Thanks, Sudha.
So it’s just automatically default set-up in Trade Station. It’s just one of the common ratios that Fibs use. That’s just how I taught to use it. I’ll show you on Gold here. Let’s take a look. Let me move my camera up here. And then I’ll go at GC. I’m doing some analysis on Gold. And you’re probably talking about right this right here.
Where I basically I grab a number from low, high, low. I’m going to go low, high, low. And then it is projecting in the future $161, $138, $100 and $61. If you double left click on this thing you can format it and make it do pretty much anything you want. But these are the built in once too this indicator. And I just don’t usually mess with the defaults for most of stuff.
In this case scenario upside you’re going to go $61, $38, 0 and $100, $138, $168 so that’s why they are the defaults, they’re just very common Fibonacci ratios. Now, I would tell you I usually use most of these on extensions but when I’m looking for retracements so let’s say I was interested in going long some Gold on a pullback if I was not already long I would draw from this low to this high and I’d be looking for a 50 percent pullback even though there are tons of once are a billion like $23, $38, $50, $61, $76.
I just filled it with or look for or favor the $50 and $61.8 on pullbacks. I let everybody else be suckers and buy this once they tend not to hold and then if it retraces to 61 percent heads up it’s probably going to trace all of it so that’s how I do it. Sudha, thanks for the question. I really appreciate it.
Hubert.
