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It is impossible to know, of course, when a stock has reached a longterm peak or trough. Just because you are able to draw a good Fibonacci retracement that seems to line up well with prior price action doesn t mean a major reversal is in the works. What the lines do tell you, however, is that if the stock does start moving rmly either up or down, its next natural stopping point (either to pause or reverse) is going to be the next Fibonacci level. Take Figure 13.11 as an example. The very top line represents the termination point of the reference line. A person deciding to sell this stock short around this point would need to pay close attention to the retracement levels beneath the current price. In this instance, the price moved down two retracement levels before reversing and moving higher. A trader short this stock would want to be especially watchful when the stock reached any retracement level, because each of them represents a potential reversal point, as was the case here. The longer and more substantial a prior price move, the longer it will probably take prices to move through the retracement levels in the opposite direction. Figure 13.12 shows the stock chart for Duke Energy, and the reference line is displayed. Notice the price action that took place to

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Often, mandated code requirements force engineers to design beyond the limits of good engineering judgment. For example, it may be obvious to the designer that certain loading conditions will not be necessary because of the con guration, construction type, location, or occupancy of a building. We have seen wind-, snow-, and seismic-mandated code requirements increase in complexity in recent years. Wind load factors, snowdrift coef cients,

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the right of the reference line. It took years, but the price pushed higher and higher through the various retracement levels. First the price reached the 23.6 percent level, then it backed off. The next time, it pierced this level, almost reaching the 38.2 percent level, at which time is eased back to the 23.6 percent level (this time as support instead of resistance). It then pushed through the 38.2 percent level to pause at the 50 percent level, and so forth. You can follow the steady progression on the chart, but it is clear what an invaluable perspective the retracement levels would give to a person trading this stock. Without it, a trader is essentially ying blind. Fairchild Semiconductor (Figure 13.13) provides another good example of using retracement levels as anticipated reversal points. After a very broad downward move from 2000 to 2002, the stock bounces between a very wide range. The lower three retracement levels, however, provided excellent indications as to the reversal points during those post-crash gyrations. As always, drawn objects can be used in combination with one another. If more than one object suggests a reversal point, that only strengthens the

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and seismic analysis methods have greatly increased the complexity of structural design for the typical building. Supposedly, complicated and unwieldy loading conditions are a result of more accurate scienti c or engineering research. But, at the same time, the coef cients provided in the current building codes often result in less snow, wind, or seismic force being applied to a structure compared to what the previous codes would have required. Most practicing engineers, if given the choice, would opt for the simpler series of loads, knowing full well that they might be conservative. From a structural engineer s standpoint, there should be provisions in the code for alternate simple load provisions for wind, snow, and seismic design at this time when fees for architectural and engineering services are shrinking, and the expectations of our clients are rising. It is debatable whether the design community is designing safer structures today because of the complicated snowdrift, wind loads, and seismic requirements than we did with the earlier codes.