TOTAL FIBONACCI TRADING

CLASS VI: TRADE SETUPS

Class VI: Trade Setups

Review
Price projections and targeting:
• Support and Resistance tool for measuring & subdividing price ranges
• Extension tool for measuring and subdividing retracements
• Expansion tool for measuring and subdividing price targets
• Fib Fan tool for measuring and subdividing trending targets

Time Targeting:
• Time Extension tool for measuring and subdividing time ranges (x-axis)
• Time Zone tool for identifying Fibonacci time cycles

Trade Setups
3.5 pieces of data we must know before we enter any trade:
• Entry conditions
• Target
• Stop
• Estimated Duration

Entry Conditions From t

his
• Fib ratio retracement ultimate data we will
ly estab
Risk : R li
• Confluence eward r sh our
• Fib Angles atio.
• Foundational Analysis
➡ Chart and candle patterns
➡ Indicators

Targets
• Fib Extensions
• Fib Angles
So, what is
th
Stop: Entry condition has broken down different Tr e purpose of
ade Setups
• Fib retracement ratios breeched ➡ To org ?
anize entrie
• Confluence breeched account fo s tha
r different t
• Market form broken forms (cond market
itions).
Estimated Trade Duration
• Fib Time Extension
• Fib Time Zones
• Market Form

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 TOTAL FIBONACCI TRADING

CLASS VI: TRADE SETUPS

Types of market forms:

➡ Motive
➡ Corrective
➡ Sideways

Trades Using Confluence

• Points of Confluence offer opportunities to enter a trade in
the direction of a current trend.
• Confluence by definition is a point where two or more
Fibonacci ratios overlap.
• When establishing a trade entry, you may want to consider a
stricter parameter requiring three or more overlapping ratios.

Trades Using Confluence As Support - Bullish

Trigger:
• A bounce up from a Confluence Zone.
• Make sure an intraday price connects with your zone.
• Make sure your close is above Confluence.
• Confirm and enter the following day, with a move above previous close.

Targets:
• (1) Recent Highs
• (2) Projection based on Confluence

Stops:
• Below Confluence Zone
• For longer-term trades, consider choosing
a lower Confluence Zone.

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CLASS VI: TRADE SETUPS

Trades Using Confluence As Resistance - Bearish

Trigger:
• A pullback from a Confluence Zone.
• Make sure an intraday price connects with your zone.
• Make sure your close is below Confluence.
• Confirm and enter the following day, with a move below previous close.

Targets:
• (1) Recent Lows
• (2) Projection based on Confluence

Stops:
• Above Confluence Zone
• For longer-term trades, consider choosing a higher Confluence Zone.

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CLASS VI: TRADE SETUPS

Confluence Failure:
• A failure of all confluence points can result in a sizable move…typically price will move to
(or beyond) the beginning of the original range!
• Often signals a change in market form on a larger fractal.

Trigger:
• A break of all Confluence Zones for a given range.
• Make sure your close is beyond Confluence.
• Confirm and enter the following day, with a move beyond previous close.

Targets:
• (1) Beginning of the largest range used to establish confluence zones.
• (2) Establish additional targets using price projection methods.

Stops:
• Retracement back within Confluence Zone
• Watch for whipsaws

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CLASS VI: TRADE SETUPS

ABC Pattern

• Trending trade with a specific retracement of BC ranging from 0.382 to 0.618 and an
extension of CD from 1.382 to 1.618
• Increase probability by timing with Confluence.
• Do not confuse nomenclature with Elliot Wave form.

ABC Pattern - Bullish

Trigger:
• Discover a BC move that qualifies within the 0.382 - 0.618 ratio of range AB. Project
extension targets based on ratios taken from range AB.
• Make sure an intraday price connects with C.
• Ideally get a close above B. You may chose to enter earlier.
• Confirm and enter the following day with a move above previous close.

Targets:
• (1) Ratios projected from AB
• (2) Projection based on Confluence

Stops:
• Below C. Consider the .618 retracement.

ABC Pattern - Bearish

Trigger:
• Discover a BC move that qualifies within the 0.382 - 0.618 ratio of range AB. Project
extension targets based on ratios taken from range AB.
• Make sure an intraday price connects with C.
• Ideally get a close below B. You may chose to enter earlier.
• Confirm and enter the following day with a move above below close.

Targets:
• (1) Recent Low - Point C
• (2) Second Low - Point A
• (3) Projection based on Confluence

Stops:
• Above the 1.618 measurement

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CLASS VI: TRADE SETUPS

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TOTAL FIBONACCI TRADING

CLASS VI: TRADE SETUPS

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CLASS VI: TRADE SETUPS

Gartley Pattern
• H. M. Gartley was an analyst and a published author in the early
20th century.
• In 1932 Gartley published PROFITS in the Stock Market in which
he described a 5-point trading pattern.
• Later it was discovered that Gartley’s pattern fits perfectly with
Fibonacci ratios.
• The Gartley pattern has five points starting at x, which is the
lowest of all points in a bullish setup and the highest of all points in
a bearish setup.

➡ AB = .382 to .618 of XA

➡ BC = .618 of AB

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➡ CD = AB

➡ CD = .618 to .786 of XA

➡ CD = 1.27 to 1.618 of BC

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CLASS VI: TRADE SETUPS

The Gartley pattern can identify the

conclusion of an eight wave cycle and
the beginning of the next.

Gartley Pattern - Bullish

Trigger:
• Establish range D through careful measurement.
• Make sure an intraday price connects with point D.
• Make sure your close is above D.
• Confirm and enter the following day with a move above yesterday’s close.

Targets:
• (1) = C
• (2) = A
• (3) = Use confluence targeting

Stops:
• Below D

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CLASS VI: TRADE SETUPS

Gartley Pattern - Bearish

Trigger:
• Establish range D through careful measurement.
• Make sure an intraday price connects with point D.
• Make sure your close is below D.
• Confirm and enter the following day with a move below yesterday’s close.

Targets:
• (1) = C
• (2) = A
• (3) = Use confluence targeting

Stops:
• Above D

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CLASS VI: TRADE SETUPS

Homework
• It’s time to apply everything you’ve learned! Work with historical
data to find entries based on:
➡ Confluence Sup/Res • Confluence Break
➡ ABC Pattern • Gartley Pattern
• Start practicing with the replay tool. Establish a minimum of 10
trades using your fibonacci tools that were successful.
• Finish collecting all of your analytics needed for class 8.

Next Lesson:
• Intraday trading with Fibs

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