How I Use Fibonacci to Identify Key Support and （我如何使用斐波那契识别关键支撑和）.pdf

How I Use Fibonacci to Identify Key Support and Resistance Levels By Carolyn Boroden The definition of synchronicity is meaningful coincidence. In the methodology I use to trade and advise clients, I look for the “meaningful coincidence” of price parameters and time parameters that are projected using the ratios derived from the Fibonacci number series. These coincidences help me to define low-risk high-probability trading setups. In this first tutorial, we are going to start with how we apply these ratios to price levels. First, let’s look at the Fibonacci number series. Number Series: 0,1,1,2,3,5,8,13,21,34,55,89,144,233, etc. This series starts with zero and one and goes on to infinity by adding the prior two numbers to get the next number in the series. Thus: 0 + 1 = 1 1 + 1 = 2 1 + 2 = 3 2 + 3 = 5 3 + 5 = 8 and so forth... As you move further out in the series, the constant that is found when you divide one number by the next is the ratio of .618 or what is commonly known as the “golden ratio. For example, 144 divided by 233 is .618. This ratio, and others derived from it, is actually what I use to analyze the market. You may be wondering what in the world is the significance of these ratios? Well, we wont get into that here because we can get into some rather lengthy discussions. What is most important about these ratios is not where they come from and why they work…but the fact that they continually show up in both nature and the marketplace. The ratios that I have found work best in my analysis are: .382, .50, .618, .786, 100, 1.272 and 1.618 Sometimes I also use .236, 2.618 and 4.236 when appropriate. There are three types of price calculations we make from the key highs and lows in a particular market. These are price retracements, price extensions and price projections or objectives. We make these projections to identify potential price support and resistance. We pay special attention to an area or price zone when we