Top Highlights

• We will find our trade setups or trading opportunities by applying the main Fibonacci ratios on the price axis of the market. There are three basic trade setups that I use in my chat room every day: (1) price cluster setups, (2) symmetry setups, and (3) two-step pattern setups. Author Tip This type of Fibonacci price analysis can work well in any m...
• We start by running three different types of Fibonacci price relationships to find our trade setups. These are retracements, extensions, and price projections (sometimes called price objectives).
• The definition of support is a price area below the current market where you will look for the possible termination of a decline and where you would consider being a buyer of whatever market you are analyzing. You might be looking to buy at or around support either to initiate a new trade on the long side or to exit a short position if you think th...
• The definition of resistance is a price area above the current market where you would look for the possible termination of a rally and consider being a seller. You might be looking to sell at or around resistance to initiate a new trade on the short side or to exit a long position if you think the resistance may hold and the market won't go any hig...
• Fibonacci price retracements are run from a prior low-to-high swing using the ratios 0.382, 0.50, 0.618, and 0.786 (0.236 is also used in some cases if the swing is relatively long) to identify possible support levels as the market pulls back from a high. Retracements are also run from a prior high-to-low swing using these same ratios, looking for ...