AMEX:SPY SPDR S&P 500 ETF
So may times I see market participants make projections based on price structure alone. This, for sure, is a sound approach. The price projection is based on the chart in relation to the Y axis (vertical, up and down). Regardless of your technique, if you are serious about your trading, and you want an edge, try using Fibonacci time cycles (this is your X axis, or side to side). How can you start? Pick the trade system that works for you and then take a significant event as your start point. For the S&P 500 (using SPY as a proxy), I chose September 29, 2015, when the S&P began a rally after closing at 186.05. As I "spread out" the Fibonacci time cycles (these are the vertical blue lines) I tried to fit them to major events. Let's see what I found: At Fib 0 was the Sept 29th low of 186.05. At Fib 1 a confirmation of the rally was given when the thick black Ki jun-Sen baseline of the turned up (a buy signal). Fib 2 was the end of the consolidation as the / turned up, as did the Ki jun-Sen baseline. Fib 3 was a warning of trend change as the Ki jun-Sen baseline turned down, the thick red cloud baseline turned down, vortex went negative (red over green), and the lips, teeth, and jaws of the alligator turned down. Fib 5 (remember, Fibs are 1-2-3-5-8-13, etc), told us we were heading into the February lows in the S&P . Now we are approaching Fib 8. This will be April 14th. I look to a significant event on this day, plus or minus a couple of days. So, I suggest you use your X axis as well as your Y axis. If the trading technique you understand is acting as you think it should, the Fibonacci time cycles can guide your timing. If several of the Fib time cycles match what you have charted, the future Fibs are likely to indicate the "when". Part two of this series will be for silver ( SLV ). Let's see if this works on the metal as well as the S&P 500 . I hope this has been entertaining as well as informative. Yours for better trading, Don.