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.
In this article, I will explain what this trade setup is, and then provide examples to show how you might use this strategy in your trading.
Other related articles:
- FX Markets get even more Attractive By Darrell Jobman
- 3 Peaks and a Domed House by Larry Pesavento
- Three Steps To Short-Term Trading Success by Toni Turner
- Price and Time by Andy Bushak
- Using Non-Time Based Charts for Short-Term Forex Trading by Dr. John Clayburg
- Trading for Revenge: Control It or It Will Control You by Dr. Doug Hirschhorn
- How to Swim the Forex Ocean… and not get Eaten by Sharks by Kevin Davey
- Critical Forex Trader Decisions by Daniel Gramza
- Stop Hunting with the Big Players by Boris Schlossberg
- Ranking Forex Markets by Ron Schelling
- The Globalization of Currency Trading by Dar Wong
- What You Don’t Know Can Hurt You by Ed Ponsi
- The Foreign Exchange Market by Peter Pontikis