Scribd
Upload
90 views

Class III: Targeting: Notes

This document discusses different methods for establishing entry and profit targets in Fibonacci trading. It describes using Fibonacci ratios and confluence areas to identify support and resistance levels for entries, and then projecting beyond those levels to calculate profit targets. The key methods are establishing targets using Fibonacci retracements and expansions as well as projections based on areas of price confluence. Homework involves finding examples of each type of target using historical data and incorporating targets into a trading plan.

Uploaded by

uday
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
90 views

Class III: Targeting: Notes

This document discusses different methods for establishing entry and profit targets in Fibonacci trading. It describes using Fibonacci ratios and confluence areas to identify support and resistance levels for entries, and then projecting beyond those levels to calculate profit targets. The key methods are establishing targets using Fibonacci retracements and expansions as well as projections based on areas of price confluence. Homework involves finding examples of each type of target using historical data and incorporating targets into a trading plan.

Uploaded by

uday
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 8

TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Class III: Targeting


Review of Lesson 1
• How Fibs puts money in our pocket
• Establish Support and Resistance to identify measurable swing ranges
• Rules for measuring ranges using Fibonacci ratios
Notes
Rules for establishing ranges:
• ALWAYS work from right to left.
• Use internal data to help bring the grid into focus.
• When possible, place gaps at the 50% ratio.
• Take note of significant moves and place at either the beginning or
middle (50%) of the range.
• Candle wicks may need to be excluded.
(Example: A shooting star wick is often truncated.)
• Often the secondary move in a new range is more accurate than the
initial break.
• Think of ranges like a sentence…locate the punctuation!

Review of Lesson 2
• Markets are consistently changing between cycles of symmetry,
expansion or contraction
• Symmetry analysis using the “Extension” tool to measure retracements
• Method for determining market cycle using cascading ranges and the
50% ratio
• Mitigate effects of market cycles using confluence

Targeting
Two Types of Targets:
• Entry targets
➡ Establish entries
➡ Determine stops
• Profit targets
➡ Calculate risk-to-reward ratio
➡ Exit trade

PAGE 1 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Entry Targets
• Simple Fib Support/Resistance tool Goal:
• Fib Retracement (extension tool) marke Know whe
t
• Fib Confluence Entry targets should should bre the
not be e
trading or
.
Example:

Example:

PAGE 2 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Example:

“Desire
Profit Targets point of is the star tin
• Fib Expansion – Napo all achievemen g
• Confluence Projections l e on H t.”
ill
• Success always begins with the end in sight
➡ “Desire is the starting point of all achievement.” – Napoleon Hill
• Successful trades begin with the target (“desire”) in mind

Establishing Price Targets


• Amateurs often fail to exit a trade at their established price target.
• Professionals trade to targets, never through them.

PAGE 3 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Fibonacci Expansions
Fibonacci Expansions
• Using the Expansion tool in Trade Navigator:
➡ Set up with the ratios: 1.382, 1.500, 1.618, 2.00.
➡ Set up “internal” ratios: .382, .50, .618
➡ Draw lines across the entire screen.
➡ Follow range rules from Class 1.
➡ Bullish Extensions – keep your cursor to the right of center.
➡ Bearish Extensions – keep your cursor to the left of center.

PAGE 4 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Fibonacci Expansions
• Advantages of Fibonacci Expansions:
➡ Quick and easy -- immediate analysis
Notes
➡ Because of its speed, some traders like it for intraday trades on faster
markets like Forex.
• Disadvantages of Expansion analysis:
➡ Only works in a symmetrical market
➡ Least reliable of price targeting methods

Confluence
Projecting Based on Confluence
• Establish your grid by using the rules for drawing Fibonacci ranges (class 1).
• Discover areas of confluence (Class 2).
• Measure from the confluence areas to:
➡ the major swing low for bullish targets.
➡ the major swing high for bearish targets.
• Duplicate your measurement and extend beyond confluence to establish
your next target.
• Subdivide your targeted range into Fibonacci ratios.

PAGE 5 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

• To target new highs, measure from the confluence areas to major swing lows.

• To target new lows, measure from the confluence areas to major swing highs.

• Duplicate your measurement and extend beyond confluence to establish your next target.

PAGE 6 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

• Subdivide your targeted range into Fibonacci ratios.

Example:

PAGE 7 OF 8
TOTAL FIBONACCI TRADING

CLASS III: TARGETING

Projecting Based on Confluence


• Advantages of confluence-based projections
➡ Working with projections of confluence helps to establish a
focused grid on your chart.
➡ Beginning with confluence factors in the mechanics of expanding
and contracting markets.
➡ Can be time-consuming and requires patience while working to
establish the initial grid.
• Disadvantages of confluence-based projections
➡ Can be time-consuming and requires patience while working to
establish the initial grid.

Homework
• Using historical data, work to find an example of an entry
target using each of the three methods mentioned:
➡ Simple Fib Support/Resistance tool
➡ Fib Retracement (extension tool)
➡ Fib Confluence Entry targets
• Using historical data, work to find an example of a profit
target using each of the three methods mentioned:
➡ Fib Expansion
➡ Confluence Projections
➡ 50% “Box” Extensions
• Begin thinking about how you can apply your three targets
in a trading plan.
➡ Entry Target
➡ Stop Target
➡ Profit Target

Next Lesson
• Fib Angles
• The X-Axis…Working with Fib time zones.

PAGE 8 OF 8

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy