04 - Class 04 - Angles and The X-Axis

TOTAL FIBONACCI TRADING
CLASS IV: X-AXIS
Class IV: X-Axis

Review of Lesson 1
• Range Drawing - Should be getting comfortable
• Establishing points of confluence
• Understand where a market should and should not be trading
Notes
• Price targeting
Nerdy Fib Fun Facts…

• The sum of all Fibonaci numbers in the sequence up to any point, plus
1, equals the Fibonacci number two steps ahead of the last one added.
➡ 0+1+1+2+3+5+8 = 20 • 20+1=21
• The sum of any 10 numbers in the sequence is divisible by 11
➡ 0+1+1+2+3+5+8+13+21+34 = 88 • 88÷11=8
➡ 8+13+21+34+55+89+144+233+377+610=1584 • 1584÷11=144
The X-Axis
• Typically traders are focused on the Y-Axis (price).
• There is an entirely separate axis we can analyze – the TIME axis.
• By itself time cannot accurately trigger a
trade setup, but when used together with other analysis, it can become
a very powerful tool.
• The time axis is subject to the same cycle adjustments as the price axis.
PAGE 1 OF 9

CLASS IV: X-AXIS
W.D. Gann
• W.D. Gann has done extensive research on market timing and
offers an opportunity for further study.
• You have worked with some Gann principles
➡ Gaps and major moves at 50% ratio
➡ Second testing often preferable when measuring ranges
• A study by James Hyerczyk analyzed a month of Gann’s trades
and discovered him to be 92.31% accurate over 286 trades and
turned $450 into $37,000
• Gann traded a $2M personal account and left an estate worth
over $5M when he died.
• Gann suggested that out of all his analysis,
time was the of greatest importance.
➡ Time is a constant factor across all markets
➡ Developed the law of vibration
Two ways to establish your time grid:

• Fibonacci Time Extensions
• Fibonacci Time Zones
Time Extensions
• Use the “Fibonacci Time Extension” tool.
• Ratios: .382, .50, .618, 1.00, 1.50, 1.618, 2.00
• Draw the extensions using the same candles that ended and began your ranges.
* You will be working left to right now
To plot the time extension:

1) Establish a wave to measure using your range drawing
techniques learned in class one.
2) Measure the end and beginning of the wave.
3) Following the subsequent retracement, project your time
extensions from the beginning of the following wave.
(See Appendix 1 for Example)
• Clean your work by marking the internal ratios and the unison
points, then delete the lines. Projec
t
• Work to find confluence by adding a measurement of raw the sam ratios first f
ro
Fibonacci time zones. your r e point you m
ange d end
rawing
s.
Fibonacci Time Zones
• A sequence of lines spaced exactly 1.618% apart. Example: 0,1,1,
2, 3, 5, 8, 13… (days or bars)
• Projections based on Fibonacci sequence.
• Project ratios first from the same point you end your range drawings.
• Use as a confirmation piece in conjunction with another form of analysis.
PAGE 2 OF 9

CLASS IV: X-AXIS
Rules for appropriate use of time analysis

• Always begin with a price target
• Use time targets to get an idea of the current cycle duration.
• Price and time converge to form an “X”…that’s the place to take your treasure!
• Give yourself a little wiggle room
Fibonacci Angles
Fibonacci Angles
• Combination of price over time.
• Called Fibonacci Fan or Speed Lines.
• Not enough to trade from alone, but when overlaid on an
existing grid, angles can become a powerful tool.
• Use ratios: 0.382, 0.50, 0.618
• Optional ratio: 1.618
• Best used when projected from a price that intersects a
confluence zone or from an established swing measurement.
• Draw the hypotenuse to a range already established using
prior price confluence and
timing methods.
Homework
• Continuing building your skills of range drawing by
marking up two charts that result in area(s) of
confluence that were tested and respected.
• Working with these new confluence zones, establish
your vertical grid by projecting Fibonacci Time
Extensions and confirming with Fibonacci Time Zones.
Next Lesson
• Elliot Wave Principle
• Applying Fibonacci Analysis to Market Form
PAGE 3 OF 9

CLASS IV: X-AXIS
Appendix 1
PAGE 4 OF 9

CLASS IV: X-AXIS
Appendix 2
PAGE 5 OF 9

CLASS IV: X-AXIS
Appendix 3
PAGE 6 OF 9

CLASS IV: X-AXIS
PAGE 7 OF 9

CLASS IV: X-AXIS
PAGE 8 OF 9

CLASS IV: X-AXIS
Appendix 4
PAGE 9 OF 9

04 - Class 04 - Angles and The X-Axis

Uploaded by

Copyright:

Available Formats

04 - Class 04 - Angles and The X-Axis

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

04 - Class 04 - Angles and The X-Axis

Uploaded by

Copyright:

Available Formats

TOTAL FIBONACCI TRADING

CLASS IV: X-AXIS

Class IV: X-Axis

Nerdy Fib Fun Facts…

Two ways to establish your time grid:

To plot the time extension:

Rules for appropriate use of time analysis

You might also like