This article is taken from the Forex Journal, a special edition by Trader’s Journal magazine in Nov 2007.
The author is Carolyn Boroden, a commodity trading advisor and technical analyst specializing in Fibonacci time and price analysis. Her focus is on the “synchronicity” or confluences of both price and time relationships that set up relatively low risk, high probability trading setups. Ms. Boroden has been involved in the trading industry since 1978.
- Carolyn Boroden shows how to use Fibonacci price relationships and the ‘clustering’ of Fibonacci relationships to identify low risk trade setups:
Most traders who use technical analysis are familiar with using single Fibonacci price relationships (such as price retracements) to help define potential support and resistance points in a market. However, many traders are less familiar with the concept of “clustering” Fibonacci price relationships to identify high probability, relatively low risk trade setups.