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Re: ospreyeye post# 36804

Wednesday, 04/23/2014 1:42:11 PM

Wednesday, April 23, 2014 1:42:11 PM

Post# of 59584
I respect your opinion. I am some what guessing here. But since you brought up the Fibs, when a stock closes below .618 retracement, the stock typically does a 100 % retracement of the up move. I have Tom Obrien's book open in front of me. He is one of the best traders on earth. He can be found on TFNN.com.

This is his exact quote on page 65 of his latest book The art of timing the trade. Quote: "If a .618 Fib level is substantially broken on a retracement, the stock will have a tendencyto retrace 100% of the last move. A stock that retraces 100% and reverses will not breach the top of the last move up in the short-term or price move that immediately.

Another words, if it does a 100% retracement, it will positively bounce, but will not break old high in the near-term. Anyone with this book can confirm on page 65.