How I use Fibonacci extensions
Tuesday on this video we take a look at oil and gold... the real purpose is to take a closer look at how I use extensions since you can end up trading with extensions all day long and go crazy. I think that both markets...... gold... and oil.... are contracted markets.. and if I use range boxes to Define where the buyers and sellers are I think there's a little more advantage to the gold market...... but you really want to trade markets that aren't so expanded because they have no range and that means they have less reward.... whether you trade as a buyer or a seller. the good thing is that if you can have a comfortable feeling that the markets contracted it should trigger a Feeling for you to not be so quick to take a trade because a contracted Market is a function of buyers and sellers and that the Market isn't clear since there's no distance between buyers and sellers. if the buyers and sellers are unclear because of what contraction means why would you expect yourself to have a good trade when there's no range?Remember... it is far better to be a chicken because you're not sure where the buyers and sellers are.... versus a dead chicken with chicken parts all over the chart because you were trying to make decisions when the market was ambiguous for both buyers and sellers if it's a contracted Market.
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