Vegas Tunnel and Fibonacci Numbers

Very good day everyone!

I only found this website and desire to say WOW! What an outstanding source for your Forex enthusiast!!

In searching for a system or two to'play with', I read through Vegas' Tunnel and also have a question that I hope someone can answer - how can the Fibonacci numbers as revealed (the quantities of curiosity being 55, 89, 144, 233, and 377) apply to the real charting process? I have a rudimentary comprehension of Fibonacci and see how it can show areas of resistance support, but most charting software shows quite otherwise (38.2, 50, 61.8, etc.. .) - can these correlate??

Thank you for some help, and happy trading!

D.

I believe those fib ratio differs from the fib number of interest that are lines graphed x-number above and beneath the 28ema line where x is the fib number

The main base of a Fibonacci sequence is the following Number in the series is = to the amount of the Previous 2 Numbers.

Fibonacci began his series with 2 Ones. 1, 1

So we get the next number in the series by adding the previous 2 together.
1 1 = 2
Now we have 1 , 1, 2
Next Number = 2 1 = 3

Continuing with the exact same development we get;

1, 1, 2, 5, 3, 8, 13, 21, 34, 55, 89, 144, 233, 377,
Next Number = 377 233 ad-infenitum.

These amounts are then Plotted as Pips Added/Sutracted to/from the MA.

MA 144 pips, MA-144 pips

The Numbers you're used to are a further calculation derived from The Golden Ratio which is achieved by Dividing some number in the Series above by the number immediatly prior to it.

34/21 = 1.619
377/233=1.618
55/34 = 1.617

If you take 100% of a previous Price move High and divide it by 1.617, you receive,
61.8% of that Price move
If you then Split 61.8% by 1.617 The Golden Ratio you receive,
38.2percent

Hope it helps.

Thanks for the reply eastmeals!


I looked through the articles indied but still didn't see how those amounts applied to a real chart. Then I re-read the Vegas Tunnel system and worked through the examples he shows. I realize that those amounts are directly related to PIPs and not some type of support/resistance regions (aka the ratios as I was supposing). When the chart has changed by 55 pips in the tube centre, sell/buy off a portion (one fifth?) , then as soon as you hit 89 do same, etc around 377 at which you should sell/buy rest if you have some left.

This creates a lot more awareness now! Thanks for all those links - I presumed the amounts had more of an immediate relation to the ratios for the purposes of charting. I now have a better understanding of how fibs generally...

Take care happy trading!

D.

Thanks guys! The mud puddle is just starting to apparent - a bit anyways...

I've been studying the huge chart thread devoted (mainly) to James16. I think I'll be clearing all my templates and starting fresh!

Thanks again!

D.