Two of the most useful tools in a spread better's kit

Elliot wave analysis and Fibonacci retracement are two of the most useful tools a spread better can use. John C Burford explains why.

In my last post, I described a possible trading scheme in the AUS/USD using Elliott wave and Fibonacci tools. I hope you found some great examples of Fibonacci retracements in your charts.

Let's get back to the AUS/USD and get our Fibonacci tool working again and apply it to the pivot points of wave 5 (the red box) and the 11 January low, which is wave A (consisting of the numbers in the yellow boxes). This is in itself a Fibonacci 61.8% retrace of the previous wave!

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.