61.80%

[1169]

For all the guru's out there , is the 61.8% retracement on IMP at 24700 , as i just want to know if i'm drawing the Fibo lines correct?

[#2]

umm,no. You've got it upside down. The 100%point must be at the lowest trough of the graph, and the 0%point at the highest high.(The principle being that a 100% retracement would take you back to the same level as the lowest point.)
btw. that word 'guru' mustn't be used so lightly - just because somebody can say 'fibonacci' doesn't mean they make any more money than the next bloke - it only means they lose it more precisely...

[1169]

Thanks for the input AvS , much appreciated , another question so do i draw the line from 17th Aug 2007 (Low of 172.02) to 4th Mar 2008 (High of 368.00)?

[#4]

oh is THAT what you were doing...?
Ya, I suppose you could do it like that if you want. Here's the interesting bit - choose your low point as 5243, i.e. May 2004. You will see that my long-term 38% level lines up perfectly with your short-term 61.8% level. Keep in mind that we chose our starting points totally arbitrarily.
The meta-physical question is this: What relationship is there between the low of 2004 and the pull-back of 2007 that caused them both to predict exactly the same support levels in 2008???