What is Fibonacci Time and Price Analysis?
When
most market analysts talk about timing the market, their opinions are often
based on calculations made only on the price axis of the market. Although
price action can give important clues as to when a market is likely to top or
bottom, a more accurate assessment can be made by also projecting and
calculating from the TIME AXIS of the market.
Synchronicity is
defined as "meaningful coincidence."
What
we do at Synchronicity is define the important highs and lows in a
particular market and then run our projections and calculations using the ratios
derived from the Fibonacci # series. We do this on both the price axis
and time axis. When we see a "meaningful coincidence" of either
time or price parameters coming together, we identify a potential turning point
in a market and a relatively low risk trade setup.
A
coincidence of price parameters or time parameters by themselves will identify
an opportunity in the market, however when we see trading parameters on both the
Time and Price axis come together at the same time, we are looking
at our highest probability, lowest risk trade setups in the
marketplace.
In
the E-mini S&P example above, key Fibonacci price support was tested at the
1184.00-1185.00 area at the same time a Fibonacci "Time Cluster" was also
tested. A tradable low developed into these time and price parameters. The
initial rally off this time and price setup was 9.75 points.
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