Using Fibonacci Expansion For Price And Time Confluence

Fibonacci analysis is considered to be one of the main technical analysis tools out there, a must for every trader. It is being used for identifying retracement and expansion levels, support and resistance areas when using Elliott waves analysis, and much more. However, one of the most important features of the Fibonacci tools are represented by the ability to project both price and time confluence areas when trading.

Going from simple to advanced analysis, using the so called Fibonacci time zones helps a trader get and extended wave target both in terms of price and time. That means, the trader will have an educated guess about the moment of time when price should be in a specified area. Just to give you an example, if you are looking for an extended wave under the Elliott waves theory, regardless if it is the 3rd, 5th or the 1st, than you would look for 161.8% expansion level. That’s fine, you are talking about the price expansion. How about time? If price expands 161.8%, than time to get there usually falls into the same category.

Moreover, if you are looking at 61.8% retracement out of a recent move price makes, why not look at 161.8%, 261.8%, 361.8% levels in terms of time levels for price to reach specific targets? If, according to your analysis, just ended a first leg/move and want to project time areas for future price targets, than one way to deal with this is to take 61.8% out of the time taken for the recent move to complete, project an new cycle from the end of the first one, and then take the measured move and apply it to the moment the price retracement is completed. Sounds complicated? Well, it may be, but this is why this serie of recordings it is being called Advanced Trading Strategies and Concepts. It is meant to address medium trader.

This chapter contains two recordings, with two practical examples given on how to use the Fibonacci time zones and expansion tools to project both price and time, one of them dealing with gbpusd currency pair and the other one with the eurusd currency pair, on current levels, so you should benefit of this type of the analysis as well.

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