Table of Contents:

  1. Start HERE!
  2. Chart Indicators
  3. Degrees Defined
  4. Elliot Waves
  5. Entry/Exit Strategies
  6. Fibonacci is the “Key”
  7. Money Management
  8. Retracements & Projections
  9. Step-by-Step Trading
  10. Trading Chaos
Page last updated: January 18, 2017 @ 23:31

fibatworkFibonacci is the “Key”

Now we need to turn to Leonardo Pisano(1170-1250), or as better known in his time, Fibonacci.  Without going into great depth as to the mathematical ideas and concepts Fibonacci created, I plan to show you how they can be put into use to help predict levels of support and resistance of both price and time.

This sequence of Fibonacci numbers are quite useful.  They are:

5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987 and 1597

fibonaccispiral

In addition to these numbers are another set composed of ‘Twin’ numbers:

10, 16, 26, 42, 68, 110, 288, and 466

And another set of numbers known as ‘Lucas’ numbers:

2, 1, 3, 4, 7, 11, 18, 29, 47, 76, 123, 199, 322, 521, and 843

 

These ‘Fibonacci’ numbers can also be expressed as percentages.  The common ones are:

23.6, 27.2, 38.2, 50, 61.8, 78.6, 88.6, 94.1, 100, 127, 132, 150, 162, 200, 262, 434, and 684

 

WOW!  That’s a lot of numbers.  How can you ever know which ones to use?  Well, that is pretty easy; you use them all.

Want to see Fibonacci in action?  Here

btcusd_h1_2015_01_23.3.dffhsdfg

This one also has a very good example of Fibonacci & Twins numbers at work.
Pay close attention to the Price Counts.
Now go back to the Elliot Waves training page.

-=Daedalus=-

AKA Wolfgang M. Bentz III