Fibo6180 Wave Theory

One wave(S-H-M) will create multiple levels using Fibo extensions.
Max number of wave is 423.60% and best entry point is 61.80%. Buy low at 61.80% and sell high at 423.60%.
Stock price increase means go above each level. 0% => 61.80% => 161.80% => 261.80% => 423.60%.

Each level works for resistance in case of stock price is going up or support in case of price drop.

The stock rise develops through this uptrend 1-2-3 form. And 61.80% level always appears at each S,1,2,3 point area.

Example of uptrend 1-2-3 waves. Thus, such a uptrend 1-2-3 waves is rarely seen in a downward trend.

When go over 61.80% of 3rd upwave, the price will be likely to reach 423.60% of 1st upwave.

Uptrend 1-2-3 waves can be shown in long term time period.

The Fibonacci fan line plays the most important role on the stock chart. The Fibonacci extension level plays a role in resistance and support, but in addition, the Fibonacci fan line is involved in the direction of upward and downward.

This is the video example of how to draw fibo fan lines.

1st Fibo fan line. I can call this as slingshot pattern. Once this pattern created, I can expect this will be likely to go up.

2nd Fibo fan line

3rd Fibo fan line

SMA 200 curves. One of the conditions of a downward trend to upward is that stock price must pass SMA 200 curve at an almost horizontal angle.

The best entry point is the cross up area of Fibo 0.786 fan line and 61.80% level. As long as stock price is going up, we will see many of this.

Entry point Ex 1. Slingshot pattern created. Touched 0.786 fan line and bounced up.

Entry point Ex 2.

Entry point Ex 3.

3 steps up and step down

There are 4 ideal stock wave conditions and related points to enter in at the chart bottom.
1) 61.80% of 1st upwave. 25 pts
2) Slingshot pattern created. Touched 0.786 fan line and bounced up. 25 pts
3) Uptrend 1-2 waves or 1-2-3 waves. 25 pts
4) Go above SMA 200 curve. 25 pts.

Sum up each 25 pts and if you get 75 pts or 100 pts, that time is the time to buy.

I am using 15 min chart to find ideal entry point for long time price down such as more than 3 weeks. Once upward trend formed after hit the bottom, switch 5 min chart to find cross up point located at 61.80% level.

Leave a Reply