Overview:

The purpose of this article is to provide some insight as to how I personally use Fibonacci levels to look for positioning. As I mentioned prior these are not some magical numbers they provide structure and framework.  I also use them as a guide to the strength or weakness of a trend.

Technical analysis is more art than a math equation.  Different people will use these methods differently when analyzing data.  Some look at structures differently which is why we consider this an art form.  This is why I started off the article with “how I use them”.

This is not an in-depth article on Fibonacci, it is a basic overview and assumes you understand how to use the tool.  It also implies the importance of trend lines, which we are finishing up our webinar on.  The basis of all analysis in my opinion is the simple trend line, but even those are subjective and personal.

Bear Bull Defined:

I use a 2 month time frame for trends and the daily chart.  Since we are lower then we were 2 months ago, by more than 20%, and continue to push to lower lows, I consider this a bearish market once again.  Just a few weeks ago, we were not 20% lower then we were two months ago, yet we were not pushing highs either, I consider this a range bound market.  In a bull market we look for higher highs. 

Doesn’t have anything to do with Fib, but if we do not define our definitions there can be confusion.  Let’s start with the current Bitcoin chart and also take a look at Apple for a comparison.

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