*click on chart for full resolution*
Above we show Fibonacci drawn from the Open Top of a Wave to the Close Bottom of a Wave...
It is worth of note that one can get very creative in the assimilation of waves and drawing them from different areas will yield varied results... however the results seem to be very similar in terms of their location...
Thus Line in the Sand (LiS) Zones are created...
Drawing the Fibonacci from the highs to the lows of the waves...
*click on chart for full resolution*
If drawn from the Highest High to the Lowest Low of a Wave we get a similar result, albeit not as accurate as the previous example... still nonetheless a bunch of LiS zones have been created and it is up to the analyst's discretion...
What about something in between...?
*click on chart for full resolution*
Next we get a little technical and introduce the Neely Method of drawing Fibonacci, which is to take the Highest High Midpoint of a Wave and the Lowest Low Midpoint of the Wave in a specific time frame and use that as the grounds for drawing your Fibonacci.
What we find gets created is a much more accurate representation of LiS than by just taking the Fibonacci from the Highest High and Lowest Low of a Wave...
The above chart uses the 3CC to make an assumption which gets a very accurate supply confirmation at 75%
The same can and will be done using the TRO_MID (TheRumpledOne) indicator, which draws the Midpoint for every candle on the chart (this can get a little cluttered but makes for an easy to find extreme dot on the wave you wish to study).
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