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Soybeans and the 61.8% effect

Soybeans and the 61.8% effect
Photo by Kelly Sikkema / Unsplash

November Soybeans


Over the past three weeks we have been posting about what the 61.8% effect can be from the ONE44 Fibonacci rules and guidelines. Starting with the 61.8% rule,

Whenever the market holds 61.8% of a move, look for it to go 61.8% of where it just came from. This usually happens when a market is directionless, or in a consolidation period.

On 7/29/22 it hit 61.8% at 1472.00 and applying the 61.8% rule we were looking for 61.8% the other way. This was accomplished on 8/3/22 at 1366.00. With this being 61.8% we were again looking for 61.8% the other way and this happened on 8/9/22 at 1438.00. Here is what we put out in our Weekly Grain update on 8/7/22,

Continuing from the Overview, we are now looking for 61.8% the other way at 1438.00 on the rally from 1366.00 to complete the 61.8% to 61.8% target. As mentioned in the Sept. we do think it can go into wide swings for a couple weeks between the 61.8% levels of 1472.00 and 1366.00 and the major Gann squares of 1464.00 and 1368.00. When it does get caught between 61.8% levels it is not the time to use retracements on the smaller moves as the swings are wider and quicker, as you just saw this week on the moves from 61.8%.

and from the Weekly Grain update on 8/15/22,

It did hit the 61.8% target of 1438.00 and today it hit the 1464.00 major Gann square, on a break from it we will be looking for the previous major Gann square at 1368.00. This will keep the idea of wide swings between the 61.8% levels of 1472.00 and 1366.00 intact. To also add to a wide swing thinking, it hit 78.6% at 1459.00 today and using the 78.6% rule we will be looking for 78.6% the other way and this is 1382.00. The target area is 1382.00 to 1368.00.

Today November Beans hit the top end of that target area (1382.00) and we believe the wide swings between 1472.00 (61.8%) and 1366.00 (61.8%) will continue. To find out what to look for outside of these levels you can become a Premium Member for the Weekly Grain updates and get all these levels before they happen. You can also go to our website and read the Overview of each week to see some of the analysis we do.

This is the latest YouTube video on how to use the Fibonacci retracements with the ONE44 rules and guidelines.