Fibonacci Method Joe DiNapoli
levels of correction and Fibonacci extension in the style of Joe DiNapoli should be considered only as a single system. Use each tool separately will give only a partial result.
Your attention the following is a brief synopsis of crib-on system usage levels of correction and extension of the Fibonacci method, Joe DiNapoli.
On the levels of correction must be said that he was in his method left only 2 levels - 38.2% and 61.8%. Level of 50% was lost. In my opinion, it uses the minimum levels solely to the entrance, as no matter you are entering a rollback of 61.8% or 76.4%, still a stop-loss at the beginning of the wave (or "reaction" to his definition). Ultimately, the correction grid looks like the figure below. In principle, knowing the methods of entry, this grid will be plenty!
(Methods, incidentally, will be a separate discussion in subsequent articles)
Extensions have also been spared the awkwardness - he left the levels of 4:
1. COP - contracted objective point, the reduced target point = 61.8%,
2. RR - objective point, the target point = 100%,
3. XOP - expanded objective point, the extended target point = 161.8%,
4. SXOP - super expanded objective point, super extended target point = 261.8%.
Most attractive in our opinion, the time to use nets extensions that DiNapoli took into account the amount of correction and lays the standard grid, not from the beginning of the pulse wave, and by the end of the correction, as we see more of his work and common sense.
Beginners often pull the grid, not knowing how to wave, and why, so their schedules are often so many levels and can not make out what each one means. In order to understand how a wave (or "response") belongs to each grid, and consequently the meaning of the target (for grid extensions), which she gives, DiNapoli introduces the concept of « reaction index ». The figure below - crib, with which you will know what is needed for each specific grid, and that gives her the levels or accumulations of different levels of grids. There is also examples of congestion levels, which have worked and are currently still active.
And below is the complete, in our view, an example where there are existing grid correction for the scale of a larger order, and the grid extensions of waves that go against the old trend. Cluster level corrections and extensions of different grids is usually a good target - a powerful resistance in our case.
