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321 Pages·2008·14.06 MB·English

by  Boroden, Carolyn.

FIBONACCI
TRADING
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FFIBONACCI
TRADING
How to Master the
Time and Price Advantage
C A R O LY N B O R O D E N
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Copyright © 2008 by Carolyn Boroden. All rights reserved. Manufactured in the United States of America. Except as permitted
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DOI: 10.1036/007149815X
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CONTENTS
FOREWORD vii
ACKNOWLEDGMENTS ix
INTRODUCTION xi
Chapter 1:
Fibonacci Numbers and the Golden Ratio 1
Chapter 2:
Applying Fibonacci Ratios to the Price Axis of the Market 5
Chapter 3:
Fibonacci Price Retracements 9
Chapter 4:
Fibonacci Price Extensions 29
Chapter 5:
Fibonacci Price Projections or Objectives 45
Chapter 6:
Fibonacci Price Cluster Setups: Trade Setup 1 61
Chapter 7:
Symmetry—The Power Tool: Trade Setup 2 97
v
vi Contents
Chapter 8:
The Two-Step Pattern Setup: Trade Setup 3 127
Chapter 9:
Choosing the Swings for Analysis 147
Chapter 10:
Applying Fibonacci Ratios on the Time Axis of the Market 157
Chapter 11:
Fibonacci Time Clusters 175
Chapter 12:
Using Dynamic Trader Time Projection Reports and Histograms 193
Chapter 13:
Time and Price Confluence 205
Chapter 14:
Triggers and Indicators 217
Chapter 15:
The Ideal Trade Setup 247
Chapter 16:
From Analysis to Trade Entry—Putting It All Together 269
Chapter 17:
Beating the Odds with a Trading Plan 285
INDEX 295
FOREWORD
Most traders have been exposed to some aspect of what we call Fibonacci
trading, mostly in reference to Fibonacci price retracements. Traders have
been using these retracements for years to help identify them price sup-
port and resistance. But Fibonacci retracements are just a beginner’s appli-
cation of these important ratios for trading. It is how you use them in
different trading situations that is important. In addition, there are other
geometric and harmonic ratios that are equally important that you will
learn about in this book.
What most traders have never been taught is how to use these ratios
for support and resistance time targets in the same manner as they are
used for price targets. When you combine Fibonacci time and price pro-
jections as part of a trading plan, you should have a powerful approach to
identifying trade opportunities. I don’t think there is anyone who is more
qualified to teach you about Fibonacci time and price trading strategies
than the FibQueen herself (aka Carolyn Boroden).
I first met Carolyn in 1989 at the first Gann-Elliott Magazine (since
evolved into Traders World magazine) conference in Chicago. She was one
of the first people to study my Gann Home Study Trading Course, which
was first released at that conference. But she wasn’t new to the financial
markets and trading in 1989. Unlike most trading educators, Carolyn
has spent her entire adult life working with the financial markets, from
floor runner as a teenager to fund advisor to day-trading mentor. While
she has been a relentless student of the markets, she has also had years of
practical experience in almost every phase of the trading business.
vii
Copyright © 2008 by Carolyn Boroden. Click here for terms of use.
viii Foreword
We kept in contact for several years after 1989, faxing charts, analysis,
and trade strategies back and forth between Tucson and Chicago. In 1993,
I convinced her to move to Tucson to work with me. She was soon wooed
away by an offer to provide analysis and trade strategies for a fund for a
whole lot more money than I was paying her, but we have remained
friends and associates ever since.
She has been a student of my Dynamic Trading methods for almost
20 years and has used my Dynamic Trading software, which you will see
in this book, since Version 1 was released in 1997. There is no better exam-
ple of a relationship in which the “student becomes the teacher” than that
of Carolyn and me. In recent years, I’ve learned as much from her as she
did from me in the early years, especially about her symmetry setups and
trade strategies, which you will learn in this book.
I’m very proud to have been her mentor in the early years and her
friend forever, and I know that her book, which you hold in your hands,
will be one of your most valuable reference books for your business of
trading.
ROBERT MINER
Dynamic Traders Group, Inc.
Steamboat Springs, CO