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Simple & Consistent
Fibonacci Method
Prepared by: Simone Guy
{Free learning resource: NOT FOR RESALE}
3/13/2010
Overview
This is a mechanical trading method that is based on Support and Resistance. The tools that are used to
identify entries, support & resistance, targets and exits are:
•
•
•
Fibonacci
Trend Lines
Fractals
This method is NOT specific to a particular pair or timeframe and can be applied based on your trading
personality, time and risk level.
Other important knowledge:
Candlestick Patterns-
Resource A, Resource B
On this thread, however, it is traded on 15M charts. Better results are achieved trading this method
between 3:00am EST and 12:00pm EST.
Content
•
FUNDAMENTALS .................................................................................................... Pages 2-9
•
Fibonacci
o
Trends
o
Fibonacci ABCD pattern
o
Fibonacci Retracements and Extensions
•
•
Understanding Support & Resistance (S&R)
o
Trendlines & Trendline 1-2-3 Setups
THE METHOD
.................................................................................................... Pages 10-21
o
Understanding Bobokus Fib Levels
o
50% breach entries
Copyright © March 13, 2010, Simone Guy 1
Trends
UPTRENDS –
A market can be identified as being in an uptrend if higher LOWs
and higher HIGHs are being created.
DOWNTRENDS – A market can be identified as being in a downtrend if higher
LOWs and lower HIGHs are being created.
Uptrend Example
Downtrend Example
Copyright © March 13, 2010, Simone Guy 2
So if the market is in an UPTREND and then it starts creating lower highs and lows, even if temporary,
we assume that we are shifting to a downtrend.
And if the market is in a DOWNTREND and then it starts creating higher highs and lows, even if
temporary, we assume that we are shifting to an uptrend.
As the market trends it waves to achieve its destination like ebbing and flowing. So for example when
waving or trending upwards, waves will look like this:
Higher High
High
Higher Low
Low
Low to High, High to Higher Low, Higher low to Higher High
When waving or trending downwards, waves will look like this:
High
Lower High
Low
Lower Low
High to Low, Low to Lower High, Lower High to Lower Low
Retracements
The pullback from a high to a low or from a low to a high is called a retracement. Retracements are
what the market uses to find the required momentum to achieve its target or destination.
Copyright © March 13, 2010, Simone Guy 3
So it will hit a low that holds, “A”, wave to a high, “B”, retrace to a higher low “C” and extend to its
D
destination “D”.
B
C
A
Similarly, it will hit a high that holds, “A”, wave to a low, “B”, retrace to a lower high “C” and extend to
its destination “D”.
A
C
B
D
Retracements or Cs are percentages of the AB move or swing. What the Fibonacci tool does is calculates
the length of the AB wave, then measures the percentage (Fibonacci number) it retraced to, to
determine a destination (D).
FOR ABCD FIBONACCI PATTERNS….
Fibs are drawn from A to B. So A is always 100% and B is always 0%. Examples below…
Copyright © March 13, 2010, Simone Guy 4

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