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| Target new high and low extremes with Fib extensions. Look within congestion and locate the inception point for the trend that leads into the price break. Bars will often thrust 38% beyond the distance from this point to the prior high or low. Locate smaller trend impulses and lay new grids over these. They will target intermediate resistance after price breaks into new territory. Use the following simple rule to reduce late exits and protect profits: the more congestion before the breakout, the more likely that price will whipsaw before reaching the extension target. In other words, don't throw away gains waiting for the last penny if the technicals favor a bumpy ride. |
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