Fibonacci Trading: How to Master the Time and Price Advantage
.618 of the 3/8/06 low to the 4/17/06 low = 5/10/06 2.618 of the 1/3/06 low to the 2/7/06 low = 5/9/06 (good confirming cycle) 1.0 of the 1/3/06 low to the 3/08/06 low = 5/10/06 The actual high in this case was made on 5/8/06, which was one trading day prior to the cycles. This is considered to be within the time window for a high. A rather dramatic decline was seen from this grouping of time cycles. I listed a few of the cycles as confirming cycles. These cycles are not as important by themselves for a couple of reasons. The 2.618 cycle I always consider a confirming cycle. The other cycles listed are projected from smaller time periods. Relative to the cycles that were projected from the larger time periods, they would tend to be less important.
Author Tip
Price work by itself can definitely give you a “heads up� as to when a market move might terminate. Add timing to this mix and the odds for a possible reversal increase dramatically. Why use only one dimension of the market when you can use both the price axis and the time axis?
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