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Chapter 6. RSI BAMM > 1.618 Extension at RSI BAMM Confirmation Point

1.618 Extension at RSI BAMM Confirmation Point

In the Bullish RSI BAMM, the general rule for the Confirmation Point extension must focus on the location of the Trigger Bar, as it relates to the extreme prior low (see Figure 6.35). If the Bullish RSI BAMM Trigger Bar IS the extreme low, the 1.618 extension is utilized to quantify the Confirmation Point and the execution area for the trade.

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Figure 6.35.

Although other factors will be considered, the importance of the extreme low to signal a 1.618 RSI BAMM extension helps to define the ultimate execution point for the trade. Two patterns—the Bullish Crab and the Deep Bullish Crab—utilize the 1.618 extension. Regardless of which Crab defines the PRZ, the crucial technical event occurs when the price action tests this area at the same time it completes the RSI BAMM Confirmation Bar.


  

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