Tools: Fibonacci Time Projections

The Fibonacci sequence involves the use of ratios, and the two ratios that are focused on in this trading tip are 1.618 and 2.618.  Time can be forecast by measuring the horizontal time period between two points A and B, and multiplying by the Fibonacci ratios.  The result is plotted rightward from point A.

Fibonacci time projections can be made from top to top, bottom to bottom, or top to bottom.  Because of the multiplicity of swing tops and bottoms, there is the problem of a multitude of possible relationships.  One solution to the problem is to use this tool in conjunction with other time-oriented information, such as Elliott wave counts or cycle analysis.

The following chart illustrates three Fibonacci Time Projections.  Each time period measured is marked with blue lines and arrows labeled A and B.  The forecasts are marked with red lines and labeled for the Fibonacci ratio used.

Fibonacci Time Projects are easy to make using the Fibonacci Ruler tool in Ensign Windows.   The percentages, colors and markers are configured on the tool's property form.