« EURUSD--Thursday, November 11, 2009 | Main | Long Term Fibonacci Pattern in Euro--Completed? »

The Mysterious 1.272

A former bank trader was the first person I ever ran into that used the ratio 1.272 as a Fibonacci level on charts. When I asked him what the signficance of this level was--i.e., how it fitted in with the other Fibonacci ratios, he said, "I dunno. I just know that they like that level in bank trading rooms. So I like it too."

And so this happens:

A 5 minute chart of EurUsd as of 12:49 PM EST today.
091105-1249-eur5min.gif

We arrive at 1.272 (based on the first wave down). All together now, take profits and fade

(And to solve the mystery. . . just square it.)

Posted by Pure Guesswork on November 5, 2009 12:55 PM |

TrackBack

TrackBack URL for this entry:
http://www.pureguesswork.com/mt/mt-tb.cgi/414

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)