There is a brilliant invention for every busy college (or high school) student called “CliffsNotes!” Have you seen them? They are perfectly condensed renderings of much larger pieces of literature and textbooks. In essence they are an academic executive summary.
By student request, we condensed the complete Total Fibonacci Trading program into four simple lessons and aptly titled it Fibs In 4. Students who complete this program will master the core competencies of Fibonacci analysis and make real-world application within their personal trading plans.
Fibonacci analysis within the financial markets dates back to the early 12th century, and the underlying principles date back 2,000 years to Pythagoras. What is important for modern retail traders to understand is that Fibonacci Analysis is not a modern-day phenomenon and much can be (should be!) learned from the historical examples we have.
The primary goal of Fibonacci Analysis is to create a framework for market movements. In class you will hear this referred to as the “Grid.” Unfortunately, the vast majority of retail traders fail to recognize the grid within which their stock is trading. Trading should have very clear “Go” or “No-Go” decisions based on an appropriate interaction of your price graph with your analysis Grid... yet many traders continue to make decisions based on a gut feeling or a certain balance of abstract observations. Let’s stop that! It is time to understand the grid your chart is moving within, and trade with confidence.
In this 4-class series, you will learn the core elements of Fibonacci Analysis necessary to establish a grid on your chart. You will learn to forecast retracements and extensions. You will understand the importance of confluence and trading “zones.” You will also understand how to apply Fibonacci Angles and have an overview that applies fibs to the X-Axis (Time).
Question: Will I understand the Fibonacci Analysis used in Power Trader LIVE after completing this course?
Answer: Yes! That is one of the primary reasons this program was created, to catch our Foundations students up to speed with Fibonacci Analysis used in Power Trader LIVE.
Have you heard of the Rosetta Stone? Not the language company, but the actual Rosetta Stone? It’s a fascinating piece of history.
Here is how the story goes. The stone itself is inscribed with a decree from 196 – Basically it says, “We love King Ptolemy V, he’s a really great guy and we hope he lives a long time.” What is important is the fact that the scribes wrote this message in 3 different languages.
Then, they lost the stone. Oops! -- Maybe they didn’t really love King Ptolemy as much as they thought!
Over the next 1,700 years apparently life got busy, wars came and went, or whatever the reason was… people forgot how to read Egyption Hieroglyphs. The structure and framework of the language was lost and all we were left with is a bunch of pretty pictures.
In the late 16th century however, the Rosetta Stone was rediscovered buy a guy named Pierre-François Bouchard. Pierre thought the Stone looked interesting, but scholarly investigation later revealed that it was inscribed with identical messages in the three different languages mentioned above. Being able to read the Demotic Script and Ancient Greek, scholars were able to uncover the framework for interpreting the Ancient Egyptian Hieroglyphs.
So, what does this have to do with Fibonacci Analysis? In my personal trading, Fibs are my personal Rosetta stone. It is that one piece of information I needed to unlock all of the mysteries of financial frameworks. My discovery of Fibs in 2008 was equally monumental to my trading as Pierre’s discover of the Rosetta Stone was for language study and history.
Here is why. Fibs allow you to layer multiple forms of analysis and decode the actual framework (or grid as I call it), which exists on your chart. Without it, all we have are a bunch of pictures of Chart Patterns, Candlestick Patterns, Etc… but no real framework. Often, traders who don’t have Fibs will execute trades based on a balance of opinions and “pictures.”
Just as the Rosetta Stone decoded the framework and structure of Egyptian Hieroglyphs, I believe you will find that Fibs decode the framework and structure on your financial charts!
I’d be honored to share my “Rosetta Stone” with you in class!
I’ll see you there,