Fibonacci Combined with Pivot Points

This chapter highlights the many benefits that leading price indicators like Fibonacci price extensions, projections, and retracement analysis can offer you. Fibonacci analysis is popular; yet some believe it is a complex study. Most traders are familiar with the common correction numbers—38 percent, 50 percent, and 0.618 percent levels. However, there is a lot more to Fibonacci than just these ratios and how to use them. This chapter is designed to give you a good understanding of how to use this technical tool as it applies with other measuring techniques, such as Elliott wave theory, which we will cover shortly, and how to incorporate Fibonacci price levels using pivot point analysis. In addition, the CD (compact disk) that comes with this book includes a Fibonacci calculator and a pivot point calculator so that you can develop your own trading plan based on these studies without having to purchase extra software. Or perhaps these calculators will help support the software you currently use. Best of all, these calculators may give you an edge in determining longer-term price objectives, such as quarterly or annual price outlooks, which most software cannot do.

WHO AND WHAT IS FIBONACCI?

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