The true Fibonacci Time Extension Indicator should be constructed based on Fibonacci numbers not percentages and ratios, as is the case in NT7. The indicator needs to be constructed to place the start of the indicator (0) on a major bottom or top and simply draw vertical lines at 1,2,3,5,8,13,21,34,55,89,144, etc. bars. In application of this indicator the first few vertical lines(1,2,3,5,) are usually ignored. However, subsequent tops and bottoms frequently occur on or close to the higher Fibonacci numbers (8,13,21,34,55,89,etc.)
Please note that ratios and percentages only make sense for price levels, whereas Fibonacci numbers, similar to cycles, deal with time only. Levels and percentages (0.38, 0.50, 0.62, etc.) are meaningless for time scale.
Please note that ratios and percentages only make sense for price levels, whereas Fibonacci numbers, similar to cycles, deal with time only. Levels and percentages (0.38, 0.50, 0.62, etc.) are meaningless for time scale.
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