How To Calculate Fibonaaci Time Cycles

There are a few software packages that have built in functions for avid Fibonacci users. The Fibonacci Trader and Miner’s Dynamic Trader are two packages that I have seen demonstrated. These packages assist the user in analyzing and projecting price and time targets using Fibonacci retracement or extension ratios, and time cycles. The user is able to break the analysis down to almost any intraday time period.

This article is to help traders learn how to project Fibonacci time cycles using an Excel spreadsheet or a Fibonacci time extension feature. The main difference between the features is that an Excel spreadsheet is based upon calendar days not trading days.

The following are some fundamentals that you need to understand. These fundamentals can be applied to any time frame, i.e. minute, daily, weekly or monthly chart.

Swing highs and lows may be easiest to determine using a bar chart.

Select major swing points. Major swing points tend to have more significance in the bigger picture.

Dates that are further apart between swing points have more meaning.

A confluence of projected dates is more reliable than a standalone date.

Dates one or two periods either side of the projected dates may be the actual date of a reversal.

Price must be moving in the direction of the current trend and be close to a high at the time of the projected date.

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