Turning point analysis in price and time is contained in these two manuals contain of the Fibonacci, and charting techniques I use in my own trading to forecast market movements and turning points. While the learning never stops, nothing is being held back in this including some completely new material in the literature of technical analysis.
The combination of detailed in these has proven work for me in actual trading. This includes three real time, real money trading contests, not hypothetical or paper trading. In addition to trading, I also use these techniques in providing technical commentary and proprietary trading recommendations an international trading institution.
There are five Fibonacci techniques introduced here for forecasting market tops and bottoms. These will be referred to as the Fibonacci Spatial Relationship techniques. In this section you will learn how to apply the basic techniques. In the next section you will learn when to use each technique.
FIBONACCI SPATIAL RELATIONSHIPS OF PRICE
In ‘The Trading Advantage” manual the history and concept of Fibonacci numbers and the related Golden Section ratios were detailed. A knowledge of these basic concepts is needed for the discussion of the more advanced relationships detailed in this section. For reference, a brief summary of the important Fibonacci relationships follows:
Fibonacci Number Series
1, 2, 3, 5, 8, 34, 55, 89, 144, 233, 377, 610, 987 …
- Ratios of adjacent numbers in the series (Golden Section Ratio) 0.618 and 1.618
- Ratios of alternate numbers in the series 0.382 and 2.618
- Ratios of 2nd alternate numbers in the series 0.236 and 4.236
The Fibonacci Spatial Relationships of price movements are very easy both to learn and to apply in everyday trading situations. The key factor is to at all times remember the principle of the Golden Section in its original form. This form is defined quite simply as the division of space between any 2 fixed points. It really is as simple and straight forward as that!
When applying the Fibonacci/Cycle Section methodologies to the price scale, the two fixed points required may consist of any of the following:
- high to high
- low to low
- high to low
- low to high
The only other requirement is that these high and low price reference points should be significant enough to be readily discernible in a quick perusal of the chart under study. These techniques are applicable to charts of all time frames.
The Golden Section divisions of 0.382 and 0.618 and the associated expansions of 1.618 and 2.618 are the most important in the relationship of price movements in the financial markets. The .50 and 1.00 ratios and the 2nd alternate Fibonacci ratios of and 4.236 are also significant, although secondary to the Golden Section ratios.
The charts included in this section are from four markets, the S&P 500, T-Bonds, D- Marks, and Soybeans. These exact same markets over the exact same time periods are used to illustrate each technique. Using the same markets over the same time periods eliminates the possibility that the techniques were “curve fitted” to the data after the fact. What you will see is that virtually every turning point in these markets can be explained by one of the Fibonacci Spatial Relationship techniques described. For my money, and I mean that literally, there can be no greater testament to the significance and power of these methodologies than this observation.
– Chapter 1. Advanced Fibonacci Analysis Techniques
- Fibonacci Spatial Relationships of Price
- Using the Analysis
- Fibonacci & Elliott Wave
- Calculating The Projected Target Prices
- When To Use Each Fibonacci Technique
- The 3 Point Set Up
- Fibonacci Number Targets
- Fibonacci Time Relationships
- Fibonacci Number Count
- How To Do The Time Counts
– Chapter 2. Advanced Gann Analysis Techniques
- Spread or Straddle
- W . D . Gann
- Master Time and Price Calculator: Square Of
- History Of The Square Of Nine
- Construction Of The Square of Nine
- Technique I : Using Price To Forecast Price Targets
- Helpful Hints For Using The Square Of Nine
- Technique II: Using Time To Forecast Time Targets
- Technique Ill: Using Time To Forecast Price Targets
- Technique IV: Using Price To Forecast Time Targets
- Technique V: How To Predict The High And Low For Each Day
- Technique VI: The Importance Of Natural Squares
- Technique VII: Cardinals And Corners
- The Two Master Time And Price Calculators
- Summary: Square Of Nine
- Primary Nurn bers, Ratios, And Cycles
- Secondary Numbers, Ratios, And Cycles
– Chapter 3. Advanced Short Term Analysis Techniques
- Pivot Points
- High/Low tines
- How To Use High/Low Lines