carolyn boroden cb@fibonacciqueen - cmt association – … · carolyn boroden cb@fibonacciqueen...

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Synchronicity Market TimingCarolyn Boroden

cb@fibonacciqueen.comhttp://www.fibonacciqueen.com/

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A price cluster is the coincidence of at least three or more

Fibonacci price relationships within a relatively tight range.

These clusters identify potential key support and resistance

zones. If you take trades against these cluster zones with a

good “trigger” or “filter” (with the trend in mind), you can

greatly improve your trading results.

Symmetry by itself can also be used to create a “trade setup”.

It is similarity of swings in the same direction.

A two-step pattern is a variation of a price cluster trade.

High Probability Setups

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Ratios and Price RelationshipsRatios used in the analysis: .382, .50, .618, .786, 1.00, 1.272 & 1.618

Confirming ratios: .236 and 2.618

With these ratios we run:Retracements of prior highs to lows or lows to highs

Using .382, .50, .618, .786 (.236)

Extensions of prior highs to lows or lows to highs

Using 1.272 and 1.618 (2.618)

Projections of prior high to low swings projected from a high OR

Projections of prior low to highs projected from a new low

Using 100% and 1.618 (2.618)

This work gives us our “SETUPS”

price clusters, symmetry and two-step patterns

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For the highest probability setups, you want to focus on the trades in the

direction of the trend of the chart you are analyzing

These setups give you definition of RISK and TARGETS

Look at the pattern on the chart you are setting up

If it is bearish (lower lows and highs) set up the sell side

If it is bullish (higher highs and lows) set up the buy side

Once you have a setup, go to a lower time frame chart to look for an entry

trigger.

For example, for a setup on the 15 minute chart, go down to a 3 min chart, or

a 1 minute chart or a tick chart (233 tick, 144 tick or 89 tick)

Tools used in this analysis

Fibonacci price relationships

Fibonacci Timing

Understanding of symmetry (holding and breaking)

Pattern

Extensions for targets

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Fibonacci Price RetracementsFor retracements, we are measuring prior low to high or high to low swings. Then

we multiply by the retracement ratios (.382, .50, .618 and .786). and either

subtract the result from the high (if running low to high swings for support) or

add the result to the low (if running high to low swings for resistance).

% Retracement .382, .50, .618, .786

low

high

for potential support

for potential resistance

high

low

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Fibonacci Price Extensions

Price extensions are essentially Retracements beyond 100%

We most often use 1.272 and 1.618 as extension levels.

low

high

high

low

run the low to high

extensions for possible

support

Run the high to low

extensions for possible

resistance

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Fibonacci Price Objectives

(Projections)

low

Fibonacci price objectives or “projections” are measured from 3 points or prior highs and

lows in a market. We typically use 1.00% and 1.618 for these projections.

high

low

for possible resistance for possible support

high

low

high

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E-mini Russell

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Target eventually met

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Symmetry (the power tool)

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Ideally we want to enter in the direction

of the main trend

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This zone was test multiple times

before it took off in earnest

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Note the timing considerations***

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Decision to decision

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Fibonacci Timing

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Timing Result

We eventually saw a new high, but did see

a 60.20 point decline from the timing cycles

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Did it kick in?

NO….not this time

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77.90 10 days

77.80 10 days

GREAT SETUP

It eventually failed

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Price cluster with timing

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One decision to the next!!

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Price cluster with timing

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A good case for a trailing stopWe did NOT make the daily target