{"id":125839,"date":"2018-04-27T08:15:15","date_gmt":"2018-04-27T12:15:15","guid":{"rendered":"http:\/\/countingpips.com\/?p=125839"},"modified":"2018-06-01T15:39:49","modified_gmt":"2018-06-01T15:39:49","slug":"how-to-trade-indexes-with-fibonacci","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/04\/how-to-trade-indexes-with-fibonacci\/","title":{"rendered":"How to Trade Indexes with Fibonacci"},"content":{"rendered":"
April 27, 2018<\/div>
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By<\/strong>\u00a0www.TheTechnicalTraders.com<\/a><\/u><\/strong><\/p>\n

One very important component of the continued research we,\u00a0www.TheTechnicalTraders.com<\/u>, conduct into price, price patterns and price rotation is the study and application of Fibonacci price modeling.\u00a0 As you have seen with some of our other charting and modeling tools, we have invested a great deal of time and energy to create useful price modeling tools to assist us in our daily research and analysis.<\/p>\n

Our Fibonacci price modeling tool is another adaptive learning model that is capable of adapting to price rotation by learning from past and current price variances as well as repeated price pattern formations.\u00a0 This tool is a one of a kind type of project that we covet with a great deal of respect.<\/p>\n

Today, we are going to illustrate how this modeling system assists us and how we attempt to use it to identify trading opportunities and longer term potentials for success.\u00a0 As of April 24, the markets closed dramatically lower \u2013 by almost -2% on average.\u00a0 This move lower pushed many of the current prices into a unique price pattern that may be very temporary.\u00a0 We will start by attempting to illustrate the NQ chart with our Fibonacci price modeling system and we want to make one thing very clear\u2026.<\/p>\n

Today\u2019s downside price rotation, excluding the ES chart, setup a new potential for future bearish trending if the current price is unable to recovery back above the key Fibonacci Bullish Price Level.<\/p>\n

Let\u2019s get started with the NQ chart.\u00a0 The first things we want you to concentrate onto are the YELLOW price channel and the PURPLE price high\/low ranges established by price rotation. \u00a0It is critical that you understand how price rotation, pure price, sets up all of the analysis that this modeling system completes.\u00a0 Nothing else is used other than price and time.\u00a0 The most recent price high and low levels (in most cases) establish the Fibonacci price range.\u00a0 This is what we use to make trending decisions.<\/p>

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This current NQ chart has rotated lower and is currently telling us that we should expect further downside price activity as long as price stays below the Fibonacci Bullish Price Level.\u00a0 Although, our ADL price modeling system is warning that the markets will enter a strong upside rally within days.\u00a0 Thus, it is our opinion that this recent move is a \u201cwash-out\u201d low price rotation that is attempting to fade the longs.\u00a0 The NQ Fibonacci price high is at 6867 and the Fibonacci price low is at 6307 \u2013 watch for these levels to be breached before trend accelerates.<\/p>\n

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The ES chart is set in a similar price formation to the NQ chart.\u00a0 Highlighted on this chart are three primary components of our Fibonacci price modeling system; the projected price levels, the Bullish & Bearish Fibonacci key price levels and the key market price rotation markers (tops and bottoms\/price rotation points).\u00a0 Understanding our modeling system is key to your better understanding the research that we provide to you.\u00a0 On the right side of this chart, we\u2019ve highlighted two key projected price levels\u00a0 with lines drawn in CYAN (light blue).\u00a0 We want you to pay special attention to those projected price levels because they became key support and resistance just a few weeks ago.\u00a0 If you understand the significance of this example, you\u2019ll begin to see how past price rotations attempt to predict future price turning points using advanced Fibonacci concepts and theory.<\/p>\n

IMPORTANT NOTE<\/em>: If all of this is a little to advanced to understand, that\u2019s ok too. Maybe you don\u2019t want to understand or learn, and just want nothing but our best trade setups and alerts? Well, members can have our SMS trade alerts so they get only our Buy, Stop, and Profit Taking alerts. Meaning you have trade like a pro and only spend 10-30 minutes a weak to adjust a position or enter a new one as you receive an alert!<\/p>\n

This ES chart is showing a similar analysis to that of the NQ \u2013 expect continued bearish price action unless the current Bullish Fibonacci price level is breached @ 2718.50.\u00a0 Again, we believe this current downside price move is a \u201cwash-out\u201d low price rotation within a bullish trend.\u00a0 One of the reasons we believe this to be the case is clear if you understand price rotation.\u00a0 Look at the entirety of the move recent price rotation.\u00a0 After establishing the key low price bottom, price has failed to attempt to take out that low.<\/p>\n

Remember, price must always attempt to establish new highs or new lows through price rotation within Fibonacci theory.\u00a0 Therefore, until that low is breached, and as long as new higher low has been created, price is failing to commit to new lower lows.\u00a0 Thus, it must be attempting to commit to higher highs.\u00a0 The ES Fibonacci price high is at 2718.50 and the Fibonacci price low is at 2552.00.<\/p>\n

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The YM chart below provides the clearest picture, in our opinion, of the detailed Fibonacci price rotation process.\u00a0 Very similar setups in price are still in place between all three charts.\u00a0 Yet, the price rotation on the YM chart provided clear confirmation that price was attempting to advance rather than collapse recently.\u00a0 The Bullish Fibonacci Price Level on the right side of the chart was breached and confirmed three weeks ago with a close above 24135.\u00a0 The NQ and ES did not achieve this key price element in Fibonacci theory.<\/p>\n

Additionally, the BLUE downside price projection point was very shallow compared to the recent peak high. This is typically a sign that any price rotation may be shallow as well and short lived.\u00a0 As of the recent closing, the current close is below the Bullish Fibonacci Price Level, thus we are expecting some potential weakness in price until it advanced back above this level.\u00a0 Yet, our believe that this \u201cwash-out low\u201d is a process of targeting near priced longs is still valid.\u00a0 If, at the end of this week, price is back above the Bullish Fibonacci Price Level, we will have further confirmation that this downside move was just a \u201cwash-out low\u201d.\u00a0 The YM Fibonacci price high is at 24827 and the Fibonacci price low is at 23306.<\/p>\n

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Lastly, we are going to show you a much longer term Monthly SPY chart running our Fibonacci price modeling system for comparison.<\/p>\n

When you look at this chart below and compare the price action you see to the previous chart, remember this Monthly chart is really the key to the longer term price potential.\u00a0 As of right now, the current price is below the Bearish Fibonacci Price Level, which indicates a reason to be concerned with potentially further downside price activity.\u00a0 Yet, the projected Fibonacci price levels have clearly defined support and resistance at, or very near to, the current price rotational high and low.\u00a0 This would indicate that the current price rotation is within expected ranges and until a new closing price low is established below the 253.70 level.\u00a0 Any downward price move will find support near 246.30 (the GREEN projected price level).<\/p>\n

Price MUST advance +4% from current levels to abate any downside pressure resulting from this recent move.\u00a0 In other words, we need to see a solid price advance over the next 5+ trading days, before the end of April, to technically qualify any further advance higher based on this Monthly Fibonacci modeling system.\u00a0 Of course, the Daily and Weekly models will tell us a much faster and more detailed shorter-term Fibonacci price model for this same price rotation.<\/p>\n

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We\u2019ve received hundreds of comments regarding our Adaptive Predictive Learning (ADL) price modeling system and we love to hear how all of your are enjoying our research.\u00a0 This Fibonacci price modeling system, once you understand it as well as we do, is a very powerful price modeling tool that helps us identify unique opportunities in the markets for our clients.\u00a0 Each of these tools provide unique benefits and understanding as to what to expect in the future.\u00a0 We try to condense all of this into easy to understand daily updates for all of our valued members so you don\u2019t have to spend decades trying to learn and understand all of this.<\/p>\n

Currently, our ADL price modeling system is telling us the markets will attempt to rocket higher within 3~5+ weeks.\u00a0 You\u2019ve probably seen that research or can view it on our web site or from our free email newsletter.\u00a0 Our Fibonacci price modeling system, is warning us that price could fall below support if it does not rally back above the Bullish Fibonacci Price Levels as our ADL model is predicting.\u00a0 Thus, we are suggesting this current downside price rotation is likely a \u201cwash-out\u201d price low that may become somewhat meaningless in the near future.<\/p>\n

Follow our Daily video forecasts and our future research to learn more about how we help our clients find profits in these moves.\u00a0 We are already positions for what we believe will be the best opportunities for success with our members.\u00a0 Join us and learn how we can help you find greater success \u2013 visit\u00a0www.TheTechnicalTraders.com<\/a><\/u><\/strong>\u00a0today.<\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0www.TheTechnicalTraders.com One very important component of the continued research we,\u00a0www.TheTechnicalTraders.com, conduct into price, price patterns and price rotation is the study and application of Fibonacci price modeling.\u00a0 As you have seen with some of our other charting and modeling tools, we have invested a great deal of time and energy to create useful price modeling […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-125839","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/125839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=125839"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/125839\/revisions"}],"predecessor-version":[{"id":125840,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/125839\/revisions\/125840"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=125839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=125839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=125839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}