Using Fibonacci on STI

Other than the book on Elliott's waves, I have also bought another book "Fibonacci Trading: How to Master the Time and Price Advantage" by Carolyn Boroden. To be honest, I find this book less appealing. The author assume the readers to be well verse into Fibonacci and share her trading strategy straight away. One reason would probably be that she is not into wave count and thus not equip with skill to merge both techniques. Nevertheless, she uses a lot of charts to demonstrate how she actually apply Fibonacci.


Fig 1 STI Weekly Chart

In this chart, I uses 2 techniques of Fibonacci available from Metastock. First is a Fibonacci retracement from the down wave which shown STI broke out of the 50% and the next level of 0.618 with no resistance in between. The 0.618 level is located at 3,003.

The other I use is Fibonacci Projection from 1st to 3rd wave. Its projection to the next level is 123.6% @ 3,010. This seems to be very close to the value I have calculated base on the Flat break out. If base on Carolyn's technique, I think this would be the resistance level, coincidentally, a resistance is located near by at 2,972.