Introduction to Fibonacci Price Clusters and Timing on the...

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Introduction to Fibonacci Price Clusters and Timing

on the CBOT mini-Sized DowCarolyn Boroden

Synchronicity Market TimingSYNCMT.COM

Apprentice Trading Academy (702) 273 1335Las Vegas, NV

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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.

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KISSLet’s keep it simple

Fibonacci Cluster + a trigger = trade

Maximum risk is defined just above or below the extreme of the price cluster zone

Trade target = 1.272 extension of the prior swing into the cluster zone

Fibonacci Cluster – a trigger = stand aside until the next setup

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Fibonacci

Fibonacci Number Series: 0,1,1,2,3,5,8,13,21,34,55,89,144,233,etc...

The number series will continue to infinity by adding the previous two numbers

Example: 34 + 55 = 89, 55 + 89 = 144, etc.

Ratios used in the analysis.382, 50, .618, .786, 1.0, 1.272 & 1.618

Sometimes (.236, 2.618 and 4.236)

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Fibonacci Price RetracementsWhen a market makes an initial move (for example low to high), it is not unusualfor that market to retrace either .382, .50, 618 or .786 of that previous move and

then resume the original trend.

Low

High

% Retracement .382, .50, .618, .786(for potential support)

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Fibonacci Price Extensions

High

Low

Price extensions are essentially Retracements beyond 100% We most often use 1.272 and 1.618 as extension levels.

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Fibonacci Price Objectives(Projections)

ALow

BHigh

C 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.

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Price Cluster: coincidence of at least 3 Fibonacci price relationships within a relatively tight range

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If a zone is not violated..it is still good

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Symmetry

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