Fibonacci Time Extension.

EXAMPLE #3



Example of 5 min chart with our Pro Chart Fibonacci Tool. Futures SP01M (6/03 and 6/04 2001)

In this example of the S&P 500 futures, the market makes a large leg up and retraces to the first Fibonacci level, continues the rally, and then has a deeper pullback to the 50% level of the prior up swing. This coincides exactly with a Fibonacci Time Extension. When Fibonacci retracements line up with Fibonacci time extensions, large and very predictable moves OFTEN occur.



Example of 5 min chart with our Pro Chart Fibonacci Tool. Futures SP01M (6/04/2001)

This chart occurs later in the same day. After this leg up, the SP500 pullback to the 50% Fib level, rally about halfway of the down leg, and then begin their new wave up at the exact Fibonacci Time Extension! Using Fibonacci retracements without time extensions is not nearly as accurate. This software will pay for itself for an entire year with just one profitable trade. Once you are in the trade, look to the Fibonacci extension points above to decide where to exit the trade. If the stock or futures appears to be very strong, expect it to break through and stop at the second price target. Very rarely will prices get all the way to the third price target without a significant pullback first, but in the example above the market is very strong and has no trouble reaching this level. Notice the immediate and swift pullback at this level as traders everywhere quickly take profits at this level.



Example of 5 min chart with our Pro Chart Fibonacci Tool. Futures SP01M (6/05/2001)

The amazing thing about Fibonacci retracements and time extensions is that you can use them over and over, multiple times per day and they work a very large percentage of the time. This chart is a continuation of the one above, notice how after this leg up, the futures retrace to the first Fibonacci price level before resuming their uptrend.

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