Fibonacci Trading provides a one-stop resource of reliable tools and clear explanations for both identifying and taking advantage of the trade setups naturally occurring in the markets that will enable you to reach the highest rate of profitable trades. Inside, you’ll find a unique trading methodology based on Fibonacci ratios, and the author’s personal experience analyzing and setting up the markets in real time, which makes this practical volume invaluable to the self-directed investor.
My purpose in writing this book is to give you an introduction to the fascinating world of Fibonacci. It is also to provide you with a very specific trading methodology that can be added to your current list of strategies. For me, this method has continued to identify key trading opportunities in the markets since 1989, and it has never failed me.
Chapter 1 will introduce you to the Fibonacci numbers and the Golden Ratio—the backbone of this methodology. Chapters 2 through 9 will take you through the steps of using Fibonacci on the price axis of the market, including the trade setups that are created with this work (These are the trade setups that I provide for my clients every day in my live chat room.)
Chapters 10 to 13 explain how to apply Fibonacci to the time axis of the market and then combine this with the price work to find the highestprobability trade setups. Chapters 14 to 16 will help you fine-tune your market entries, ending with an example of a trade setup from analysis to entry.
Last but not least, Chapter 17 focuses on trading psychology, discipline, money management, and the importance of having a written trading plan. (The proper psychology will allow you to implement your trading plan, with the discipline to follow the plan along with proper money management techniques.)
- Fibonacci Numbers and the Golden Ratio
- Applying Fibonacci Ratios to the Price Axis of the Market
- Fibonacci Price Retracements
- Fibonacci Price Extensions
- Fibonacci Price Projections or Objectives
- Fibonacci Price Cluster Setups: Trade Setup 1
- Symmetry—The Power Tool: Trade Setup 2
- The Two-Step Pattern Setup: Trade Setup 3
- Choosing the Swings for Analysis
- Applying Fibonacci Ratios on the Time Axis of the Market
- Fibonacci Time Clusters
- Using Dynamic Trader Time Projection Reports and Histograms
- Time and Price Confluence
- Triggers and Indicators
- The Ideal Trade Setup
- From Analysis to Trade Entry—Putting It All Together
- Beating the Odds with a Trading Plan