After some more study about how to better time my trades, I
had an epiphany today. If I could use
the Fibonacci series on time cycles I can plan the best moment to place a
trade. Of course there is no crystal
ball but nature’s own math can help you come close to being in harmony with the
“organized” chaos of the market.
I was introduced to the Fibonacci Queen Carolyn Boroden
through watching Jim Cramer. Her
analysis turned on my light bulb about using the Fibonacci series over time and
not just over price action. I started
using the Fibonacci time tool in Think or Swim this morning on my Facebook
trade and realized that I could have made a better decision about timing my
entry point than I did. I entered in on
Monday when I could have waited till Tuesday before I entered the trade.
If you look at the chart you can see where I placed the Fibonacci
tool at the beginning of the trend and it traces the moment where I could have
placed the trade. I placed my trade on
Monday (yellow circle) but I should have placed my trade on Tuesday (blue
circle). The line drawn in black shows
the Fibonacci measurement at where I should have been focused.
I used the tool on the 5 minute and 1 minute chart too and
it works just as well. This is
groundbreaking for me because I learned from trial and error that it is always
best to wait for a pullback before entering a trade but the key is timing the end
of the pullback. This Fibonacci tool
will help me plan my entry a lot more efficiently.
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