Simple's Green Room

[pennies2007]

I'll answer that question in the next video. Basically, what we'll do is what SG suggested...drop to the lower time frame and use fib levels there as well. What we like to see is where the fib levels start converging. Let's say we see a Trade Level on a 15 minute fib box that coincides with a Trade Level on the 4 hour box. If they're both right at the same level and price is heading up towards there, we can say with some confidence that price action is likely to stall out there since it's basically a double resistance zone from a fib viewpoint.

As far as slack goes, there's always going to be a bit of that at any key level. But as long as the price action is reflecting the market's recognition of that level overall, a bit of overshoot or an undershoot isn't really much of a concern.