Trade Using Fibonacci Tools, Analytics and

Technicals: Fibonacci Price Clusters and

Symmetry on CBOT Mini-Sized Contracts
Thursday, July 6, 2006

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 Trade Using Fibonacci Tools,
Analytics and Technicals:
Fibonacci Price Clusters and Symmetry
on CBOT Mini-Sized Contracts

Carolyn Boroden
Synchronicity Market Timing, LLC
www.syncmt.com
 Presentation Outline
ƒ Fibonacci numbers
ƒ Fibonacci ratios
ƒ Fibonacci price relationships
Price retracements
Price extensions
Price objectives/projections
ƒ Fibonacci price clusters
Fibonacci timing
How to put it all together to create relatively low risk,
high probability trade setups
 Fibonacci
ƒ Fibonacci Number Series:
0,1,1,2,3,5,8,13,21,34,55,89,144,233,etc…
ƒ The number series will continue to infinity
by adding the previous two numbers
ƒ Example: 34 + 55 = 89, 55 + 89 = 144, etc.
 Fibonacci Ratios
ƒ Fibonacci Ratios: .382, .50, .618, .786,
1.272 and 1.618
ƒ These ratios + others are derived from the number series
ƒ Example:
89 = approximately.618 of 144
34= approximately .618 greater than 21
144 divided by 233 = .618
.786 = square root of .618
1.00 - .618 = .382
55 x 1.618 = approximately 89
Fibonacci Price Retracements
High

% Retracement .382, .50,

.618, .786 (for potential support)

Low
When a market makes an initial move (for example low
to high), it is not unusual for that market to retrace
either .382, .50, .618 or .786 of that previous move and
then resume the original trend.
Fibonacci Price Extensions

High

Low

Price extensions are essentially Retracements

beyond 100%. We most often use 1.272 and 1.618
as extension levels.
 Fibonacci Price Objectives
(Projections)
B High

C Low

A Low

Fibonacci price objectives or “projections” are measured

from three points or prior highs and lows in a market. We
typically use .618, 1.00% and 1.618 for these projections.
 High Probability Setups

ƒ A price cluster is the coincidence of at least three or

more Fibonacci price relationships within a relatively
tight range. These clusters identify potential key
support and resistance zones. If you take trades
against these cluster zones with a good “trigger” or
“filter” (with the trend in mind), you can greatly
improve your trading results.
ƒ Symmetry by itself can also be used to create
a “trade setup.”
 KISS
ƒ Let’s keep it simple
ƒ Fibonacci Cluster + a trigger = trade
ƒ Maximum risk is defined just above or below the extreme of
the price cluster zone
ƒ Trade target =1.272 extension of the prior swing into the
cluster zone
ƒ Fibonacci Cluster – a trigger = stand aside until the
next setup
ƒ A trigger is simply price or pattern action that suggests a
reversal in trend against key support or resistance.
ƒ A trigger tells you it is time to take ACTION.
Price Clusters
Introduction to Fibonacci Timing
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