Valid Fibonnaci Expansion

[toyogo00]

Hi Neal,

Just a quick question, you normally draw a down trend Fibonnaci Expansion from the High (A) -> Low (B) -> High(C), where point C high is lower than point A.

+ A
|
| + C
| | |
| | |
| | |
+ B |

Is the following Fibonnaci expansion drawing a valid one? (C is higher than A)

+ C
| |
| |
+ A | |
| | |
| |
+ B

Regards,
Toyogo

[toyogo00]

Hi Neal,

Sorry, the text drawing is not readable. I attach the file to show it.

Regards,
Toyogo

[FibMaster]

Yes it is valid, definitely. Not a good sign of a strong trend though, so be aware of that.

There is a lot to be learned from expansions. I had a great seminar/webinar on that topic last weekend. Check http://www.fibmarkets.com for details.