Fibo Time Periods — another Tool, for the Trader’s Toolbox
In this article I would like to share such tool As Fibonacci Time periods. In my opinion,this analysis tool,unfairly deprived of attention.
More information is sufficiently small, I hope this article will be informative and useful.
The magic time of Fibonacci numbers
Using this tool we can we can find:
1. Length of the future movement
2. Begining and the end of the correction
3. Time “windows” of possible reverse
And also the use of the meted in Currency movements.In addition, if we use Fibonacci retracements, we’re getting the instrument which help us to have clear understanding of what’s happening on the market.
The method itself is very simple, as we can say — we can write the whole method on the other site of the postal stamp.
The levels we use:
0 , 38.2 , 61.8 , 100 , 1.382 , 1.50 , 1.618 , 200 , 2.382 , 2.618
I’m sure that there’s nothing new to you all, as we can see the same levels, while using Fibo Retracements.Use the minimums and maximums established markets.
Usual Fibonacci used to determine the limits of price fluctuations. Fibo Time Periods determines timing of price changes.
We put 0 on the minimum, 100% on the maximum, and this way we’re getting levels 1.382%, 1.50%, 1.618%. I’m pointing out this levels, as on my subjective view, these levels are “working” more often on the market. Showing us the most possible region where the market will possibly change direction. More often, this time window is between 1.382% and 1.618%.
So we’re getting another tool into our technical analysis methods. Offcourse you can use other levels 200% , 2.382 % , 2.618% as well, but I’m using 1.382% and 1.618%.
After we’ve got the base on 1.51, we’re taking the fibo that we’ve put before on the minimum at 1.4812 and a maximum 1.5436, and moving them onto 1.51, and so we’re getting the time targets 61.8 % , 100% , 1.382% ,1.618%, and so on, as shown below.
In this example, I’m showing you the usual fibo retracement. And as you can see, when there is a cross of the time fibo level and a fibo retracement level, we’re getting the Time window, with a high possibility of the trough formation.
A history example and a forecast using Fibo time levels.
For a better understanding of this method, I have shown you how it works on a daily time frame.. But also this method can be used on any time frames from 5 mins to the months.
In this article, I have shown a very easy and simple method of understanding of the FX market situation.
We’re getting the Time window reversal of the market price.