- November 20, 2019
- Posted by: Forex Wiki Team
- Category: Forex Trading System
Dear Trader,
It has been quite a while since the last Fibonacci Trader Journal. I decided to write new FT Journals only when there
is new developments that have exciting possibilities for trader.
The advent of the “High Probability Fibonacci Zone Analysis™” is certainly one
of those occasions. We are fortunate that John Jackson has worked with us to make
this new tool a reality. We are grateful that we have obtained exclusive world
computerization rights from him.
Like all new tools, you must learn its strengths and weaknesses (sorry about
that... even great tools are not perfect). The Fibonacci Zone Analysis™ is
actually dynamic statistical analysis. Given the fact that it is pure statistics, we now
have a concept that we can dovetail it with
our technical tools and indicators.
VERY IMPORTANT:
On the opening of each day the Zone Matrix will display the probabilities for that day. Some days there will be useful opportunities and other days there will be none.
It is important that you use these High Probabilities Fibonacci Zones in combination with other technical tools and not as a stand alone trading plan.
Because it is not a technical tool in the normal sense of the word, combining the Fibonacci Zone Analysis with other technical tolls can highlight opportunities not really visible by themselves.
Actually it is a statistical analysis of zone pattern probabilities based on comparing yesterday's close and today's open.
This tends to display potentially profitable trading situations, by answering 3 questions.
1. How often will prices reach a specific zone.
2. If prices reach a higher zone, how often will that be the high zone for that day.
3. If prices reach a lower zone, how often will that be the low zone of the day.
Definition of resistance : Zone 1 to 5 is the higher zone for the day. Since for zone 6 there is no upper boundary, resistance for zone 6 is defined as prices breaking to close in a lower zone.
Definition of support : Zone 2 to 6 is the lower zone for the day. Since for zone 1 there is no lower boundary, support for zone 1 is defined as prices breaking to close in a higher zone.
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