Power Point Fibonacci Review Workshop 11 28 16 Aa

Fibonacci Trading Review
Workshop
Presented by Larry Gaines

2
Disclaimer
Fibonacci for Support - Resistance
& Price Target Analysis
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 In the early 1200’s, an Italian mathematician
Leonardo Fibonacci discovered the famous
Fibonacci number sequence or series.
 The famed Fibonacci numbers turn up in many

areas of nature, the human body and music.
 They also show up in Market Action and if they

continue to show up in the universe they have
predictive values that can be used and even
used in trading….
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It’s all based on Fibonacci’s famous
number sequence or series…
This number series will continue to infinity by

adding the previous two numbers…
0,1,1,2,3,5,8,13,21,34,55,89,144,233,etc…
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The Fibonacci number sequence is directly
related to the Golden Ratio (1+√5/2 ) which
results in the Golden Number Phi…
(1.618033988749…).
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 If you multiply any term in the series by the value of
the golden ratio (1.618), the answer that results will
be close to the next number in the series.
 For example, 8 is .618 greater than 5 and when the

higher numbers in the series are multiplied by the
golden ratio, the result becomes closer and closers
to the next number in the series.
5 x 1.618 = 8.08
8 x 1.618 = 12.944
13 x 1.618 = 21.034
21 x 1.618 = 33.978
34 x 1.618 = 55.012 8
 For Fibonacci Support & Resistance Analysis,
Fibonacci Ratios that are derived from the number
series are used.
The ratios used are:
.382, .236, .50, .618, .786, 1.0, 1.272 & 1.618, 2.618, 4.236
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Trading & Fibonacci
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 Support and resistance levels are seen as important in
terms of market psychology and supply and demand.
 Support and resistance levels are the levels at which a lot of

traders are willing to buy the stock (in the case of a support)
or sell it (in the case of resistance).
 And Fibonacci is a very useful and effective technical

analysis tool for establishing support & resistance levels or
zones to trade against.
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It’s all based on key Fibonacci ratios.
The 38.2%, 50% and 61.8%.
However, more multiples can be used when needed, such as

23.6%, 78.6%, 127.2%, 161.8%, 261.8% and so on.
There are three different types of price relationships that are

used for this trading analysis:
1. Fibonacci Retracements
2. Fibonacci Extensions
3. Fibonacci Projections
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1. Fibonacci Price Retracements
For possible support, run low to high swings using the ratios below
For possible resistance, run high to low swings using the same ratios
high high
for potential resistance
for potential support
low low
% Retracement .382, .50, .618, .786

2. Fibonacci Price Extensions
high
high
low
low
Price extensions are essentially Retracements beyond 100%.
Use the ratios of 1.272 and 1.618.
Run low to high swings for possible support.
Run the high to low swings for possible resistance.
3. Fibonacci Price Projections
For possible resistance For possible support
high
high high
low low
low
Fibonacci price projections are measured from 3 points on the chart to compare swings
in the same direction.
Mostly use 1.00% and 1.272% and sometimes 1.618 for these projections.
Run prior low to high swings from another low for possible resistance.
Run prior high to low swings from another high for possible support.
To run Fibonacci Price Support
Retracements Price Extensions Price Projections (3 points)
Lows to Highs Lows to Highs Use

100%
Use Use A 1.618
B B
.382 1.272
.50 1.618
.618 C
.786 High to Low
from High
A B
A
To run Fibonacci Price Resistance
Retracements Use Price Extensions Price Projections (3 points)
.382
Highs to Lows .50 Use Use
Highs to Lows
.618 1.272 100%
.786 1.618 1.618
A
Low to B
A
High from
Low
C
B
A
B
 Fibonacci Price Retracements
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Fibonacci Price Retracements
For possible support, run low to high swings using the ratios below
For possible resistance, run high to low swings using the same ratios
high high
for potential resistance
for potential support
low low
% Retracement .382, .50, .618, .786

Top Down Fibonacci Analysis
Charts Nov., 2016

 SPX: Monthly, Weekly, Daily
 NQ: Monthly, Weekly, Daily, 60 minute
 IWM: Monthly, Weekly, Daily
 DX: Monthly, Weekly, Daily
 CL: Monthly, Weekly, Daily
 GC: Monthly, Weekly, Daily
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S&P 500 (SPX)
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Monthly: High to Low = Retracement Resistance & Extensions
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Weekly: High to Low = Retracement Resistance
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Daily: Low to High = Retracement Support
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NASDAQ 100 (NQ)
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Monthly: High to Low = Retracement Resistance
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Daily: High to Low = Retracement Resistance
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30
60 Minute: Low to High = Retracement Support
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RUSSELL 2000 ETF (IWM)
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33
34
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USD INDEX (DX)
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37
38
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Crude Oil
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41
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Weekly Low/High Retracement Support & Monthly High/Low Retracement Resistance
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Daily High to Low Retracement Resistance & Low to High Retracement Support
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45
Gold Futures (GC)
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Weekly: Low to High = Retracement Support
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 Fibonacci Price Extensions
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2. Fibonacci Price Extensions
high
high
low
low
Price extensions are essentially Retracements beyond 100%.
Use the ratios of 1.272 and 1.618.
Run low to high swings for possible support.
Run the high to low swings for possible resistance.
 Fibonacci Price Extensions
SPX
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52
Weekly: High to Low = Retracement Extension
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 Fibonacci Price Projections
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3. Fibonacci Price Projections
For possible resistance For possible support
high
high high
low low
low
Fibonacci price projections are measured from 3 points on the chart to compare swings
in the same direction.
Mostly use 1.00% and 1.272% and sometimes 1.618 for these projections.
Run prior low to high swings from another low for possible resistance.
Run prior high to low swings from another high for possible support.
Prior Measured Move to Identify Resistance
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Prior Measured Move to Identify Support
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Spotting Momentum Breakouts
Trend Lines
© RLCG Management LLC – 2012 – All 58

Rights Reserved
How is this done? Trend Lines…
•Supply and demand dictate price movement and the use of Trend
Lines.
•Trend Lines are universally used but the construction of them can
be very dissimilar from one person to the next causing for a very
subjective interpretation.
•So precision and accuracy demand that the lines be extended

from right to left with the most recent date appearing at
the right side of the chart.
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Supply Pivot Points
A supply trend line is the declining price movement as

defined by a down sloping “supply” line as well as the
pattern of both lower price highs and lows.
The Supply Pivot Point is when there is a Price High that is

not exceeded by the Prior Price or the Price immediately
after.
This is a Pivot High.

Rights Reserved
61
© RLCG Management LLC – 2014 – 62
All Rights Reserved
All Rights Reserved
All Rights Reserved
All Rights Reserved
Demand Pivot Points
The Demand Pivot Point is when there is a Lower Price that

is lower than the Prior Price and the Price immediately after.
This is a Pivot Low.

Rights Reserved
67
68
All Rights Reserved
 Chart Examples
70
Fibonacci Trading Review
Workshop
Presented by Larry Gaines

Power Point Fibonacci Review Workshop 11 28 16 Aa

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Power Point Fibonacci Review Workshop 11 28 16 Aa

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Fibonacci Trading Review

Presented by Larry Gaines

 The famed Fibonacci numbers turn up in many

 They also show up in Market Action and if they

This number series will continue to infinity by

 For example, 8 is .618 greater than 5 and when the

 Support and resistance levels are the levels at which a lot of

 And Fibonacci is a very useful and effective technical

The 38.2%, 50% and 61.8%.

However, more multiples can be used when needed, such as

There are three different types of price relationships that are

for potential resistance

for potential support

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

For possible resistance For possible support

Lows to Highs Lows to Highs Use

for potential resistance

for potential support

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

Charts Nov., 2016

 NQ: Monthly, Weekly, Daily, 60 minute

 IWM: Monthly, Weekly, Daily

 DX: Monthly, Weekly, Daily

 CL: Monthly, Weekly, Daily

 GC: Monthly, Weekly, Daily

For possible resistance For possible support

© RLCG Management LLC – 2012 – All 58

•So precision and accuracy demand that the lines be extended

A supply trend line is the declining price movement as

The Supply Pivot Point is when there is a Price High that is

This is a Pivot High.

© RLCG Management LLC – 2012 – All 60

The Demand Pivot Point is when there is a Lower Price that

This is a Pivot Low.

© RLCG Management LLC – 2012 – All 66

Presented by Larry Gaines

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