TRADERS DAILY

For a basic understanding of fibonacci click: http://www.mcs.surrey.ac.uk/personal/r.knott/fibonacci/fib.html

The ratios i use to trade the S&P 500 INDEX are: 0.382% 0.618% 0.768% 1.000% 1.272% 1.618%

I use the fib numbers 1,2,3 and 5 during an intraday session (1 trading day).That is,1 hour,2hours,3 hours and 5 hours into the session. So, if the market opens at 9.30*, 1 hour will be 10.30,2hours will be 11.30, 3 hours will be 12.30 and 5 hours will be 2.30. (The market closes at 4pm) 

You will often see a V shape or A shape form around these times- I call these fibonacci time zones.

Extensive research has shown me the value of paying attention to these particular time zones. I expect to see a trend reversal (not always, but often) around those time zones.Now, if at those time zones i see support or resistance i have 2 reasons to expect a turn. If i see price hitting a pivot or a fib ratio at those time zones,again another reason to expect a reversal. I like to see more than one reason to put on a trade. You are looking for the probabilities to be in your favour before risking money.Its a case of waiting for a likely setup before pulling the trigger.    *US MARKET

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