Category: Learn Fibonacci Analysis

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.

Background

From 2015 to 2018, I was a stock day trader but not successful in making money. Because, as you know well, we do not know where can be support levels in case of price falling or resistance levels in case of price rising in the chart. My main concern is why stock is going down or up after hit the specific level. I spent unlimited hours to research this issue. Of course, this is the curious topic that most trader want to figure it out. In 2018 I found very interesting rules existed in stock chart. One stock wave can create Fibonacci levels from low at 61.80% and high at 423.60% using Fibonacci extension tool. This means if you buy stock at 61.80% level, best way is to hold and sell high at 423.60% level.

The method I figured out is kind of new analysis and many traders asked me any references in internet or book. Actually all knowledge are gathered here at www.fibonacci6180.com and I am willing to share this knowledge to any one who has interesting. The method I want to deliver can be realized by existing charting tool. I am here mainly use tradingview.com and TOS(thinkorswim) to create chart analysis. I would like to say you can read the chart with great confidence and fun mind because you already know the future of top or bottom from the current price move.

You will learn

Tradingview.com Fibonacci setup
Create Fibo extension levels from 0%(floor) to 423.60%(ceiling)
Create Fibo fan lines which can help price projection
How to find the top or bottom price in the future
How to find the Ideal point for entry or exit at all stages
What Fibo fan lines slingshot pattern means for
Important of continuous uptrend 1-2-3 waves
What are sufficient conditions from down to up swing
How to use SMA 200 curves

Read below priceless trading strategy I have developed. You can learn the basic theory of stock wave and find top or bottom point on the stock chart.

Fibo6180 Wave Theory

Good for who?

– Day trader for short term. Time frame 1 min. – 15 min
– Swing trader for mid term. Time frame 5 min. – 60 min
– Position trader for long term. Time frame 60 min. – 2 days
Fibo6180 technique can apply to all types of trading.

Where is the highest point of US stock market

I am researching follow tickers to find the top or bottom point of US stock market index. I have founded very interesting fact that if 20% of stocks listed as below touch the highest point such as 423.60%, S&P 500 index will go down. On the contrary, if 20% of stocks touch the lowest point such as floor level, S&P 500 will go up. This is the Pareto law. So my main job is to keep monitoring these 80 tickers if they reach their highest and lowest points. Also I researched many more stocks to get more accuracy in finding top and bottom point. When Pareto rule established, I am sending a signal for buy or sell. I am a swing trader for hunting Nasdaq futures and this kind of buy or sell signal happening in 3-5 times in a year. So far, by using Fibonacci 6180 method, I have successfully founded top and bottom point in US stock market since 2018.

MAJOR INDEXES
– NASDAQ FUTURES
– NASDAQ INDEX
– S&P 500 FUTURE
– S&P 500 SPY
– DOW INDEX
– KOSPI
– HANGSENG
– SHANGHAI

FUTURES
– GOLD(GC)
– OIL(CL)
– NATURAL GAS(NG)
– COPPER(HG)
– VIX

ETFs
– TQQQ
– SQQQ
– SOXL
– SOXS
– LABU
– LABD
– NUGT
– DUST
– UGAZ
– DGAZ
– UCO
– SCO
– TVIX
– UVXY

FOREXs
– US DOLLAR INDEX
– EURUSD

BLUE CHIPs -about 50 tickers including
– Apple (AAPL)
– Amazon.com (AMZN)
– Facebook (FB)
– Microsoft(MSFT)
– Netflix(NFLX)
– Berkshire Hathaway (BBRK.B)
– Alphabet Inc- A shares (GOOGL)
– Citi Group (C)
– JP Morgan Chase & Co (JPM)
– Bank of America (BAC)
– Wells Fargo (WFC)
– Goldman Sachs (GS)
– Walt Disney Company (DIS)
– Verizon Communications (VZ)
– Comcast Corp.- A shares (CMCSA)
– AT&T (T)
– Nvidia (NVDA)
– Advanced Micro Devices (AMD)
– Qualcomm (QCOM)
– Intel (INTC)
– Micron Tech (MU)
– Broadcom (AVG)
– Salesforce (CRM)
– Visa Inc (V)
– Mastercard (MA)
– Walmart (WMT)
– Costco (COST)
– Coca-Cola Company (KO)
– PepsiCo (PEP)
– Procter & Gamble Company (PG)
– Home Depot (HD)
– Starbucks (SBUX)
– UnitedHealth Group (UNH)
– Johnson & Johnson (JNJ)
– Merck & Co. (MRK)
– Pfizer (PFE)
– Chevron (CVX)
– Exxon Mobil (XOM)
– Tesla (TSLA)
– UPS (UPS)
– Fedex (FDX)
– Ford Motor (F)
– Delta Airline (DAL)
– American Airline (AAL)
– Southwest Airline (LUV)

Crytocurrency
– BTCUSD
– ETHUSD
– XRPUSD

All index, futures, ETFs, bluechips, Forex are working all together to point out market’s top or bottom.

Required YouTube videos

Before you learn Fibo6180 method, you have to watch carefully following videos.

– Tradingview.com set up https://youtu.be/pyrS1p6bkRI
– NASDAQ FUTURES CHART 0504 https://youtu.be/BXkd598beIc
– NASDAQ FUTURES CHART 0430 https://youtu.be/MyJxbT3wTvQ
– SPY CHART 0414 https://youtu.be/sbjQJxL6PW0
– NASDAQ FUTURES 0310 UPDATED https://youtu.be/DA9Fzi2rbk8
– Any other videos in my channel to check how I create Fibo levels and fan lines.

Tradingview.com Fibonacci Analysis setup 081320

In conclusion

• Find the bottom of stock market index using Pareto rule I explained in this contents
• Enter in at the very early stage like 61.80% when you see 4 upswing conditions. Generally you can see the cross up point with Fibo fan line slingshot and 61.80% level. This is somewhat safe enter strategy. Or you can try at the support level which means a real floor price. This is high risk and high return strategy.
• Hold until price go up to the top at 423.60% and sell.
• At the top, using Pareto rule also, you can also find the topped index of stock market.
• You missed the enter at early stage and want to buy in the middle of progressing, please wait to see the cross up point created and buy once such condition made. See below example. This stock will down to touch the circled area 61.80% and then will bounce up.