Chapter | 6ADJUSTING TRADITIONAL FIBONACCI PROJECTIONS FOR HIGHER PROBABILITY TARGETS

When this chapter was written 10 years ago it was a specialization of mine at that time. Add another 10 years of experience and the subject became a book released early in 2006. The book is called Fibonacci Analysis and it was published by Bloomberg Press. This chapter should be viewed as a light introduction on the subject that I view as the most critical first step of any analysis work I do.

My first step in analyzing any market always begins by identifying the Fibonacci price grid that identifies support and resistance levels. Only then do I apply and consider other methods to answer how the market will react to the targets: whether nearby targets will end ...

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