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Wednesday, December 9, 2009

Are You a Fan ...

Of Fib Fans? ... :)

We use fibonacci fans in the CIL. Anchak was the first to use them heavily and Columbia has done some fantastic work with them in his charting.

I use them only occasionally myself. They are a fantastic auxiliary tool when used with other TA. But every once and awhile I go back to my fan chart.

I had not looked at this chart for a few weeks, but went back to it when I was working on my currency pair charts. This is very interesting:

The rally bounced off of and closed above the 78.6% fan line for the latest Minor A-B fan.

Combine this with my last currency pair post EUR/USD Breakout? showing that the US Dollar might take a small breather and my updated count Teamwork Baby! I think we have a good shot of finally starting Minor C.

Also note my longer term projection on the chart above and how it fits with my longer term projection Dust, Wind... Dude

Yeah I think we will get a rally for the next couple of weeks for a few percent. But I would mainly view it as an opportunity to get into some long term shorts at a better price.

My $0.02

Solaris's Observations - see comments below

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