Fib Lines for Futures

Hi Traders and Welcome Back.

Things are moving along well with my Yahoo Group and membership has grown about 20% in the past month or so.  It seems like word of the Fib Lines indicator is starting to spread and I think its great.  Keep it coming and please let your trading friends know and ask them to join the group to get updates.

At the urging of a some new members I have added support for a handful of futures with continuous contracts as follows:

/ES - E-Mini S&P 100

/EMD  E-Mini Midcap 400

/YM - Mini Dow Jones Industrials

/TF - Russell 2000 Index Mini

/NQ - E-Mini Nasdaq 100 Index

/CL - Light Sweet Crude Futures

/GC - Gold Futures

Most of these products are based on the major stock indices. So the interpretations were all highly similar to their ETF counterparts which bottomed at the depths of financial crisis in 2008 and put in the end of Wave 1 in March or April of 2010.

The only chart that gave me some trouble was /CL - Crude Oil Futures.  After some struggle I came up with the following which you can see on the left.

Recall that crude had an incredible spike up to nearly $150 a barrel in June of 2008 just to crash all the way down to a low of about $33 a barrel just a short 6 months later.

What was interesting is where prices held after that crash which was just about $35.  Going back in time, it turns out that price level has been an important point of resistance all the way back to the year 2000!

So I ended Wave 1 at the $35 area and the result is what you see above which shows the entire sequence of lines.  Not shown on the chart is the beginning and end of wave 1 which started in 2000 at $11.05 and and ended in 2009 at $35.6.

What leads me to think this interpretation is correct?

- Note that the high of $150 clearly exceeded the 423% line to the upside (-1)

- Note how the low at $35 corresponds to the 100% line at the top of wave 1 (+1)

- Note how the prices then rallied back up to the 423% line and were turned back (+1)

- After that, prices dropped back down to the 261% line and bounced (+1)

So that provides enough votes (in my mind anyway) to favor the above interpretation.  Based on this, its fair to say that oil seems to show a high degree long term price memory with levels being respected which go far back as 15 years.

The new version of the Fib lines indicator for TOS will be available on my Yahoo group on Sunday 4/2/2015.   If you want to join the group, please send an e-mail to:

fx-mon-subscribe@yahoogroups.com

Enjoy the rest of your weekend