"Dirty Short" - Fibonacci higher timeframe analysis on e-mini
Multi-timeframe Fibonacci analysis on the ES continuous contract - in this case a 24 hour (1440 minute) Fib set is overlaid on a 30 minute chart. In this chart the fib set was drawn at 4pm January 27th. Over the following few days price retraced to the 50% line then in the wee hours of January 30th provided a perfect "Dirty Short" entry off the 61.8% retracement (red arrow) with a target down at the green -23.6% line. While price hasn't quite hit the -23.6% line, that short entry at the 61.8% retracement level then moved about 80 points. Light grey areas are daytime market hours.
When the 0% Fib line is above the 100% line the Fib trend is up; when the 0% line is below the 100% the Fib trend is down. These Fib levels are calculated automatically on a continuous basis for whatever timeframe is set in the indicator. For a 1440 Fib set the levels are recalculated at the close of every 24 hour bar, so in this example the fib levels are drawn at 1600 hours when the 24 hour e-mini session ends in Chicago (yellow arrow), start and end points of the swing are based on highs and lows of prior 24 hour bars (yellow line).
When the 0% Fib line is above the 100% line the Fib trend is up; when the 0% line is below the 100% the Fib trend is down. These Fib levels are calculated automatically on a continuous basis for whatever timeframe is set in the indicator. For a 1440 Fib set the levels are recalculated at the close of every 24 hour bar, so in this example the fib levels are drawn at 1600 hours when the 24 hour e-mini session ends in Chicago (yellow arrow), start and end points of the swing are based on highs and lows of prior 24 hour bars (yellow line).