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Retirement was once a clear line between work and not working. Today, a career may be completed, but work is not over.
Recent AARPresearch suggests that nearly four out of 10 baby boomers are planning to work in retirement. Some over-50s report that they plan to work until they drop.
These days, that’s easier hoped for than done. Not only do older people battle the preconceptions of bosses and co-workers about older workers, but they also face a rapidly changing work environment that demands new skills. And they’re often forced to think of work in a new way, as a series of contract projects rather than a regular job.
Now technology is offering new options and flexibility. Telecommuting isn’t a new idea, but it’s crucial for retirees who want the freedom to accept whatever opportunities suit them without disrupting their lifestyle.
With smartphones and tablets, the newly retired can be productive from home, beachfront or grandchild’s playground.
The Internet also frees retirees from having to seek out colleges to brush up on job skills. Massive open online courses, or MOOCs, let retirees learn what they need to stay competitive or enter a new field.
The available training isn’t just for work skills. There’s also help available online for retirees who want to practice their interview technique. Artificial-intelligence-based coaches will help retirees test themselves with a variety of virtual interviewers. An avatar will shoot tough questions their way, readying them for an interview with a potential boss who is younger than their own children.
The U.S. economy slowed to a crawl in Q1: GDP (gross domestic product) came in at 0.2%.
When the next full-blown economic downturn arrives, cash will be the ideal refuge.
But savers and consumers face a startling prospect: Some people in high financial positions want to impose a ban on cash.
Why?
They advocate negative interest rates as a way to stimulate the economy. But they know this scheme has a problem: Most depositors would in turn use cash to avoid such a charge on their deposits.
A prominent economist has a solution: Simply eliminate cash.
"Cash... gives people an easy and effective way of avoiding negative nominal rates."
[Citigroup's chief economist] suggests three ways to address this problem:
Abolish currency.
Tax currency.
Remove the fixed exchange rate between currency and central bank reserves/deposits.
Yes, [the chief economist's] solution to cash's ability to allow people to avoid negative deposit rates is to abolish cash altogether.
Bloomberg, April 10
If interest rates fall too far, even wealthy individuals and institutions may turn to cash.
The April Elliott Wave Theorist offers this perspective:
People and institutions holding billions of dollars have been trapped into accepting a negative interest rate -- meaning a guaranteed loss on their money -- because gathering, storing and employing an equivalent value of cash notes would cost more than the amount lost to negative interest. But there is a limit to this reverse usury. A large enough disparity would make it attractive even for billionaires to store cash instead of lend it. What is that interest-rate limit? Minus 2%? Minus 5%? If the limit is reached, even wealthy entities will opt for cash. That is, if the men with the guns let them do it. ...
They want to ensure that you have no possible route of escape.
How will they do it? By outlawing cash.
"The Death of Cash" was the title of an April 23 Bloomberg article:
Beginning on May 1, [JPMorgan Chase] said it will charge certain customers a "balance sheet utilization fee" of 1 percent a year on deposits in excess of the money they need for their operations ...
Pause for a second and marvel at how strange this is. Banks have always paid interest to depositors. We've entered a new era of surplus in which banks -- some, anyway -- are deigning to accept money only if customers are willing to pay for the privilege.
Further, for the first time in history, four central banks -- the ECB, the Swiss National Bank, the Swedish Riksbank, and the Danish Nationalbank -- all currently have negative policy rates.
Yet the war on cash has only started. Now is the time to learn how to win.
To that end, we've just put together a FREE report for you titled, "The War on Cash."
This article was syndicated by Elliott Wave International and was originally published under the headline (Video) Do They Really Want to Outlaw Cash?. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
See how trendlines help you manage risk in this real-world example from this free eBook
By Elliott Wave International
One of the best aspects of technical analysis is also its biggest drawback: Namely, there are far too many indicators to choose from.
Candlesticks to channels, Relative Strength Index to Bollinger Bands, double tops to moving averages...
Geez! With so many options, you're liable to feel like a "hanging man" beneath "dark cloud cover."
But in reality, all you need is one good, solid place to start; one indicator that can be your technical rock of Gibraltar.
For Elliott Wave International's chief commodity analyst Jeffrey Kennedy, that honor goes to one of the oldest names in the book: trendlines. Back in 2004, Jeffrey went on the record with this tribute:
I believe that trendlines are one of the simplest, yet most powerful tools an analyst can employ. An early mentor of mine said it best when he pointed out that "a kid with a ruler could make a million dollars" by simply drawing trendlines on price charts.
Today, we're following up with another real-world example, only this time, you'll see how Jeffrey used trendlines to identify lasting levels of price resistance in the most popular grain market, corn.
In his April 2014Monthly Commodity Junctures Wave Watch video, Jeffrey showed subscribers how a four-month old trendline ensured that corn's upside was limited:
The next chart shows you how corn prices did indeed bump up against their long-time trendline, reversed, and sold off in a powerful decline to their lowest level not just for 2014 -- but their lowest level in four years.
Jeffrey finds trendlines so valuable that he wrote a book about them!
Look where the upper boundary line provided resistance [in Google]. Notice there is another use for it. The midpoint of the trendline provides resistance in four different areas, which is why I include the center point or the midline when I draw parallel trendlines or price channels.
As the title of Jeffrey's eBook states, there are 5 ways trendlines improve your trading:
Trendlines show you the dominant psychology of investors, be it bullish or bearish
They define your support and resistance price levels
They give you advanced warning of potential price breakout points
They help you identify critical moments in time
Trendlines also tell you when the trend has turned
Want to learn how to draw your own trendlines -- and gain an advantage you've never had before?
Right now, our friends over at Elliott Wave International have the entire 17-page eBook on their shelf of FREE trader resources. It's yours for the reading, right now -- at absolutely no cost.
This article was syndicated by Elliott Wave International and was originally published under the headline Here's Why Trendlines Are Your New Best Friend, Part 2. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
See how trendlines show you lasting price levels of risk-defining support in this real-world example from this free eBook
By Elliott Wave International
If financial market speculation were easy, then everyone would be well off -- and the legendary investor Warren Buffett would be just a nice rich guy from Omaha with really cool glasses.
The reality is, successfully navigating the near- and long-term trends is exceptionally difficult. Gains can be big, but losses can often be even bigger.
Technical analysis offers you an all-you-can-watch buffet of indicators to help reduce your risk and optimize rewards. You may already be using moving averages or momentum indicators, for example -- and you know how helpful they can be at anticipating trend changes.
Well, let us introduce you to another excellent tool: trendlines.
For the past 15 years, Elliott Wave International's chief commodity analyst Jeffrey Kennedy has been using trendlines to identify high-probability trade set-ups in close to 20 markets he regularly follows.
You might be familiar with one of those markets, cocoa. In his May 2014 Monthly Commodity Junctures, Jeffrey showed subscribers how to apply trendlines to this volatile market:
So, the forecast was for cocoa to hold above the trendline -- and rally. The next chart shows you how cocoa prices did just that, soaring straight into Jeffrey's cited price target of 3200:
Jeffrey finds trendlines so valuable that he wrote a book about them! Well, an eBook: a 17-pager titled "Trading the Line: 5 Ways You Can Use Trendlines to Improve Your Trading."
Here's an excerpt:
Now here's a neat little trick. In Figure 2-9, we use trendlines a different way. By connecting the two lines, we distinguish the breakout point. Later, it provides support when prices revisit the same line (circled).
Or, we can count the highs and take it from an intervening low, as seen in this soybean weekly chart. The reversal that occurred in price at the lower boundary line is circled.
As the title of Jeffrey's eBook states, there are 5 ways trendlines improve your trading:
Trendlines show you the dominant psychology of investors, be it bullish or bearish
They define your support and resistance price levels
They give you advanced warning of potential price breakout points
They help you identify critical moments in time
Trendlines also tell you when the trend has turned
Want to learn how to draw your own trendlines -- and gain an advantage you've never had before?
Right now, our friends over at Elliott Wave International have the entire 17-page eBook on their shelf of FREE trader resources. It's yours for the reading, right now -- at absolutely no cost.
New data finds thatGen /Millennials—the new generation of workers born between the early 1980s and the early 2000s—are highly dedicated to their jobs and often times work well beyond normal business hours. Yet they remain fiercely independent in their work habits—craving greater freedom and flexibility to work whenever and wherever they feel most productive. This is according to a new study and infographic released today by RingCentral that suggests companies must adopt the right tools, policies and procedures to empower this new wave of employees.
In fact, the proliferation of mobile technology seems to be eroding away at the very notion of “normal business hours.” Some 60 percent say their employers already expect them to be accessible during off hours, while 70 percent work up to 20 hours or more outside the office each week. Roughly one-half of Millennials surveyed say flexible work hours and the freedom to work from any location would improve their work/life balance.
“It’s no surprise that Millennials are highly dependent on mobile technology to support flexible and productive work habits,” said RingCentral President, David Berman. “The vast majority seem to expect to use their own devices for work, rather than the company providing it for them. That creates a bit of challenge for companies that have to find a way to deal with BYOD as part of their business phone system.”
“In a global economy where business is conducted around the clock, it’s reassuring to employers that Millennials are so willing to be available on a flexible schedule and use their own devices to do so,” Berman said. “But, that means it’s our responsibility as employers to provide them with accessibility, solutions, security and freedom to work how and when it’s best for them and the company.”
The online survey was conducted in early 2014 within the United States by Survey Monkey on behalf of RingCentral. It was completed by individuals age 18-32 from 346 businesses of all sizes. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.
Note: When ordering this new eBook on Amazon.com, if you don’t have a Kindle tablet or eReader, just download Amazon’s free “Kindle for PC” to read this book on your computer.
With the downloadable Kindle app you don't even need a Kindle tablet or e-Reader to take advantage of this knowledge.
If you've ever tried your hand at futures trading, and if you've been watching the 2014 World Cup, you've probably thought to yourself -- Yup. This looks like how it feels to invest in commodities.
Hey, if the cleat fits!
The world of commodities trading is competitive and cutthroat. The action is nonstop. Passes happen in the blink of an eye. There are no commercial breaks, or half times. And those on the field never stop paying attention to price charts, scanning and waiting for opportunity to strike.
And then comes the moment to act. You're the last guy in a penalty shootout. All that stands between you and the goal is the ticking of the clock, fatigue, and doubt.
But if you make it, the reward is like nothing else.
Everybody wants to make it.
Whether you actually do is a different story.
Elliott Wave International's Chief Commodity Analyst Jeffrey Kennedy is tirelessly committed to ensuring the odds of doing just that are in your favor.
Jeffrey spent years training with the world's greatest Elliott wave analysts before becoming one himself. His skill and discipline on the field of technical forecasting is matched only by his patience off of it -- Jeffrey's #1 rule is: Wait for price action to confirm your wave count before making a play.
Seeing Jeffrey in action is kinda like seeing James Rodriguez's "wonder volley" in the World Cup's Colombia vs. Uruguay game.
In the "Featured Market" video of his May 2014Monthly Commodity Junctures, Jeffrey stepped onto the near-term field in cocoa. The pressure was high. Prices had been sideways-bound since the start of the year. And, the mainstream "commentators" told investors to keep holding until there was a break in the fundamental backdrop.
"Traders weigh poorly received Chinese and U.S. economic data against the crisis in the Ukraine and unrest in Libya." -- May 30 Associated Press
But for Jeffrey, a clear shot to near-term opportunity in cocoa was wide open. Watch this clip from his Monthly Commodity Junctures video below so you can hear the bullish forecast in "high def":
The next chart shows you an instant replay of what happened: Cocoa prices broke out of their sideways trend and surged to the 3-year high we see today.
So, while the mainstream experts stayed on the sidelines, a near-term opportunity passed them by.
The best part about Jeffrey's video is that it's not just about watching a pro in action. Jeffrey is first and foremost a coach. He walks you through every forecast from top to bottom, explaining the what and why of every price target and wave pattern.
In the end, you come away with timeless lessons on how to apply Elliott wave analysis to actionable set-ups. Learn how to get Jeffrey's latest video update on Cocoa for free below!
In this new update from Jeffrey Kennedy's Commodity Junctures Weekly Wrapup, he shows you what to expect next from Cocoa prices.
Kennedy shows you:
The exact price targets to look for in Cocoa and explains why you should not try to pick tops in a market.
How he looks for confirming price action and uses his rules and technical studies to keep him on the right side of the Cocoa market.
A new technical study he is using to add support to his wave analysis.
To access this video forecast now for free, all you have to do is become a Club EWI member. There are no strings attached and it takes just 30 seconds to sign up.
Looks like your mother was right when she told you to sit up straight.
Health-care practitioners from physical therapists to surgeons to psychologists increasingly take posture into account when evaluating patients and offer tips and tools for improvement.
It's important for maintaining good alignment, with ears over the shoulders, shoulders over hips, and hips over the knees and ankles. Body weight should be distributed evenly between the feet.
Seated posture, especially while using a computer, is critically important and deserves more attention, experts say, in part because it can affect a person's posture while standing and walking. Experts say it is essential to think about posture while walking, getting up out of a chair or using a cellphone or tablet.
The hunched-over position of the typical electronic-device user is of particular concern.
Because poor posture can often be caused by obesity or weak muscle tone, correcting it isn't a quick fix for many patients. Even for people in good shape, bad posture habits can be so ingrained that it takes constant vigilance to improve them.
StoryWorth was founded in late 2012 by Nick Baum, a San Francisco-based software engineer and product manager who left his job at Google in 2011 to pursue an entrepreneurial path. The idea began with a simple experiment. Mr. Baum built a service called Dear Robot that sent a daily text message to his smartphone asking how his day was going. His replies created what became a mini-diary.
“It was a very easy way to write a little bit every day,” said Mr. Baum, now 31.
This writing exercise reminded him of how, several years earlier, he had bought a book filled with questions about family history and childhood memories, with spaces for written responses. He had given it to his parents, hoping that they would use it to write stories he could share with his future children. Mr. Baum was especially curious to learn more about his father, Axel Baum, now 83, who was a naval officer before becoming an international lawyer. But his parents never wrote in the book.
Mr. Baum wondered whether sending them weekly queries by email instead, similar to the Dear Robot experiment, would be more effective. He tried it out, asking about their earliest memories in life, for instance, and their favorite childhood books. Breaking down the process this way got Mr. Baum’s parents to start writing.
Now, StoryWorth is one of a handful of new companies focused on emailing people to collect their family histories. Although Mr. Baum didn’t set out to cater to an older group, StoryWorth’s most active users are in their 60s and 70s. This group tends to have time to reflect on the past, and its members are motivated to pass along their stories to grandchildren and other younger relatives.
“People from that generation don’t necessarily want to reconnect with their friends from middle school,” Mr. Baum said, referring to a common Facebook practice. “But talking to their family and having a real dialogue with them is really important.”
StoryWorth subscribers have generated more than 10,000 stories. The company charges an annual fee of $49, which covers up to six family members and includes an unlimited amount of data storage. Users can also upload their own audio files and photographs.
This family history reminiscence of Margretta covers her young life up to her marriage in 1939. Born during World War I when the Black Plague was circulating the globe and growing up during the Great Depression, as the only child of two career parents, her story resonates with today's children of full-time working parents who seek a better work/life integration.
Grandson Billy and I made and painted Indian paper dolls to recreate the meetings that were held by Sir William with the Indians. A lot of work in that school project produced an "A" and Billy was asked if the school could use his project in future history class lessons.
While working with Billy, I had told him about my ancestors and how I was named after a Mohawk woman. She was the child of a Mohawk Indian woman and a French fur trader named Hartell. Her Indian name was Ots-tock and she married a Dutch fur trader named Cornelius van Slyck. Ots-tock's son Jacques became one of the first settlers of Schnectady, New York and was an interpreter between the Indians and the settlers. He owned a tavern at Washington Avenue and West Front Street.
I am a descendent of two of the daughters of Ots-tock; Susanna who married a Bratt (or Bradt) and Gertruy who married a Myndertse. Ots-tock died on van Slyck Island in Schnectady and Jacques was given the patent of van Slyck Island by then Governor Stuyvesant in 1662.
My Aunt Minnie told me that she had asked my mother to include the name Margretta either in my first or middle name because Ots-took had been called Margretta after her marriage .... and the name had since been handed down from generation to generation. Being born in the twentieth century, it seems strange that there have been so many incidents in my life that relate to my Indian heritage."
See what happens in the financial markets when the bears vanish.
If Inspector Gadget or Maxwell Smart had lived in the digital age, their bosses would have used the smartphone app Snapchat to deliver their secret missions.
Snapchat is a popular app with about 8 million users that lets your smartphone send a photo that self-destructs seconds after your recipient views it. As of September 2013, users were sending about 350-400 million vanishing messages a day -- which compares with the 127.5 million shares that changed hands in the Dow on Jan. 27, 2014.
But when Evan Spiegel, the Stanford student who came up with the idea, unveiled it to his product design class in 2011, his classmates gave it a thumbs-down. Disappearing photos? Who will use it? Little did his classmates know how the app, originally called Picaboo, would go on to capture the attention of teenagers and young adults. And even a few older folks who want to connect with them, such as 51-year-old Senator Rand Paul, who recently signed up to woo younger voters.
The idea of the disappearing photo applies beautifully to the situation in the stock market today. Pessimists on stocks are disappearing quickly. And so are bearish analysts. Not in 10 seconds, but they are still doing a version of a Snapchat disappearing act. Here's how The Elliott Wave Financial Forecast describes it (emphasis added) in this excerpt from our just-released 2014 State of the Global Markets report:
Investor Psychology From The Elliott Wave Financial Forecast, December 2013
Our list of rare optimistic extremes is growing. This chart shows that advisors are now more optimistic about the stock market than they've been in 26 years. The middle graph displays the bull/bear ratio from the Investors Intelligence weekly advisors' survey (InvestorsIntelligence.com). Bullish advisors outnumber bearish ones by a four-to-one margin for the first time in over 2½ decades...
And it's not just advisors. Assets invested in bull funds in the Rydex family of mutual funds is 5.3 times the assets in bear funds, an all-time record ratio. The bottom graph shows the total assets in Rydex's government money market fund, which just dropped to a new all-time low on a daily and 5-day basis. This record low in money fund assets indicates a record desire to own stocks and bonds and a record disinterest in investment conservatism. These measures are as bell-ringingly bearish as any we have shown in the 14-year history of this newsletter.
But what does it mean for the markets when most of the bears capitulate to bullish optimism? Not exactly what you might think. Here's how the article continues:
The Nov. 11 issue of The Wall Street Journal delivered another key piece:
Stocks Regain Broad Appeal Mom-and-Pop Investors Are Back The buyers, many with investment portfolios that were scorched during the market meltdown, are climbing aboard a ride to new highs in the Dow Jones Industrial Average.
The article cites several "propelling" forces behind individuals' re-entry that are actually classic by-products of a terminating mania. The main one is that a heightened state of optimism causes people to buy simply because prices are high and rising. The WSJ article cites the case of a 65-year old real estate appraiser who returned to stocks "when he saw a market pundit predict the Dow, up 167.80 on Friday, could hit 20,000 this year. 'I still think there's huge upside in the stock market,' he said. 'I don't want to miss out.'"... A Citigroup corporate finance expert illustrates that professionals are not immune to the bullish vibes: "This year feels like it did earlier in my career, when I had the optimism to say, 'I'm really going to have a retirement.' It feels a lot better now."
Of course it does; that's what happens near a top. The former remorse and inexplicable negative feelings have completely vanished, which means the uptrend that started five years ago should be exhausted.
Is that what you expected to read?
Elliott Wave International has been sending out pictures (that is, charts) of a bearish market for a while now -- and they do not self-destruct in 10 seconds, a month or a year. No Snapchats of a bear about to turn bullish here. And if you want to get EWI's take on Snapchat itself, read on:
BACK TO THE VANISHING POINT FOR TECH From The Elliott Wave Financial Forecast, December 2013
With the share price of mainstream technology companies such as Google, Netflix and Priceline hitting new all-time highs in November, the dot-com revival is closing in on its original late-'90s insanity. Among the many resurfacing symptoms of the old fever are reports of "eye-popping" "vanity metrics." The term vanity metrics refers to late 1999 and early 2000 valuation methods under which the standard devolved from price/earnings to price/sales to price/click ratios.
Reuters reports that "valuations for high-flying startups" are once again "hitting nosebleed levels," as "the obsession with 'eyeballs,' or raw numbers of website visitors that defined the dot-com boom of the late 1990s," is back. Reuters cites Snapchat as a prototypical example. Snapchat is a startup company based on an app that allows smartphone users to send pictures that vanish after a few seconds. The company claims users are sending 400 million "snaps" a day, but it refuses to explain exactly what constitutes a snap. It also has no profits or revenues. Nevertheless, the company's 23-year-old founder turned down a $3 billion buyout offer from Facebook "based on hypothetical revenue." Financial writers said the decision made sense because Snapchat can get more from a Chinese e-commerce company or in an IPO.
We disagree and think this kid will be kicking himself for the rest of his life. The company may indeed get lucky, but we've been down this road before. The vanishing picture app may someday become a metaphor for Silicon Valley's last hurrah.
You can get more of this kind of clear-eyed analysis in EWI's new annual report, The State of the Global Markets -- 2014 Edition. EWI is offering some of the choicest selections culled from the 50-page report to Club EWI members.
This article was syndicated by Elliott Wave International and was originally published under the headline Snapchat and the Disappearing Bears in the Stock Market. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
In this trading lesson, Elliott Wave International's Jeffrey Kennedy shows you how you can use Fibonacci to forecast potential turning points in your charts. You'll learn the most common Fibonacci retracements and where to expect them in your charts. At the end of the lesson, learn how you can get a 14-page Fibonacci eBook, free!
The primary Fibonacci ratios that I use in identifying wave retracements are .236, .382, .500, .618 and .786. Some of you might say that .500 and .786 are not Fibonacci ratios; well, it's all in the math. If you divide the second month of Leonardo's rabbit example by the third month, the answer is .500, 1 divided by 2; .786 is simply the square root of .618.
There are many different Fibonacci ratios used to determine retracement levels. The most common are .382 and .618.
The accompanying charts also demonstrate the relevance of .236, .382, .500 .618 and .786. It's worth noting that Fibonacci retracements can be used on any time frame to identify potential reversal points. An important aspect to remember is that a Fibonacci retracement of a previous wave on a weekly chart is more significant than what you would find on a 60-minute chart.
With five chances, there are not many things I couldn't accomplish. Likewise, with five retracement levels, there won't be many pullbacks that I'll miss. So how do you use Fibonacci retracements in the real world, when you're trading? Do you buy or sell a .382 retracement or wait for a test of the .618 level, only to realize that prices reversed at the .500 level?
The Elliott Wave Principle provides us with a framework that allows us to focus on certain levels at certain times. For example, the most common retracements for waves two, B and X are .500 or .618 of the previous wave. Wave four typically ends at or near a .382 retracement of the prior third wave that it is correcting.
In addition to the above guidelines, I have come up with a few of my own over the past 10 years.
The first is that the best third waves originate from deep second waves. In the wave two position, I like to see a test of the .618 retracement of wave one or even .786. Chances are that a shallower wave two is actually a B or an X wave. In the fourth-wave position, I find the most common Fibonacci retracements to be .382 or .500. On occasion, you will see wave four retrace .618 of wave three. However, when this occurs, it is often sharp and quickly reversed.
My rule of thumb for fourth waves is that whatever is done in price, won't be done in time. What I mean by this is that if wave four is time-consuming, the relevant Fibonacci retracement is usually shallow, .236 or .382. For example, in a contracting triangle where prices seem to chop around forever, wave e of the pattern will end at or near a .236 or .382 retracement of wave three. When wave four is proportional in time to the first three waves, I find the .500 retracement significant. A fourth wave that consumes less time than wave two will often test the .618 retracement of wave three and suggests that more players are entering the market, as evidenced by the price volatility. And finally, in a fast market, like a "third of a third wave," you'll find that retracements are shallow, .236 or .382.
In closing, there are two things I would like to mention. First, in each of the accompanying examples, you'll notice that retracement levels repeat. Within the decline from the high in July Sugar (first chart), each countertrend move was a .618 retracement of the previous wave. The second chart demonstrates the same tendency with the .786 retracement. This event is common and is caused by the fractal nature of the markets.
Second, Fibonacci retracements identify high probability targets for the termination of a wave; they do not represent an absolute must-hold level. So when using Fibonacci retracements, don't be surprised to see prices reverse a few ticks above or below a Fibonacci target. This occurs because other traders are viewing the same levels and trade accordingly. Fibonacci retracements help to focus your attention on a specific price level at a specific time; how prices react at that point determines the significance of the level.
Learn How You Can Use Fibonacci to Improve Your Trading
If you'd like to learn more about Fibonacci and how to apply it to your trading strategy, download the 14-page free eBook, How You Can Use Fibonacci to Improve Your Trading.
EWI Senior Tutorial Instructor Wayne Gorman explains:
The Golden Spiral, the Golden Ratio, and the Golden Section
How to use Fibonacci Ratios/Multiples in forecasting
How to identify market targets and turning points in the markets you trade
This article was syndicated by Elliott Wave International and was originally published under the headline How to Identify Turning Points in Your Charts Using Fibonacci. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
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