I have not seriously studied the markets for some time. In between, I did make some hunches for my Range 13 tick chart and the Golden Mean. It seems like my theory works out. Take a look at these charts and you will see what I mean.
This is ES(S&P). When a retrace that is more than 50% is closed, Just draw the fibs with the extensions to 61.8%, 161.6%, 261.8% etc. A pattern that is clear will emerge. At all the Golden Mean Numbers, a bounce is likely to occur. The market will likely try to retrace to the previous GMN.
YM(DOW), is much more obvious one these bounces.
This is the DAX.
This is the EUR/USD pair.
I would not bet that it will retrace to the previous GMN but counter-trend traders would like this as a tool. But if going along with the trend, at least you know where you can look for discount buys or sells. At this point I believe we will have a retrace on the S&P to the previous GMN 1014 thereabouts. I believe we will try higher to 1046 then possibly 1079 before the Bear in hibernation awakes.
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