The fib channel is anchored along the tops in this case, but the idea is to make as many points line up with the levels as possible. I usually try to make sure that the next adjacent moves have levels that hit them. Kind of like walking up and down stairs. On this chart and this particular section of the overall chart 5's and 7's recurred often. Strong downtrend bars still on the heiken ashi's.
This is not a method I would use alone, but it holds some promise.
Another thing that occurs is there will be more than one hit on a level, similar to support and resistance levels on the horizontal.
This is not a method I would use alone, but it holds some promise.
Another thing that occurs is there will be more than one hit on a level, similar to support and resistance levels on the horizontal.