Fib Time Tool

[kevinmclark]

Does anyone know how to properly use the Fib Time tool? The little info I was able to find here in the knowledgebase area seems to be outdated.

Kevin

[DuaneG]

Hi Kevin,

The Fibonacci Time tool is used slightly differently than that of the retracement or extension. The primary difference is that the Time Zones are not defined from a high pivot to a low pivot like other tools in the Fibonacci suite.

When you begin working with the Fib Time tool, you must make the first click on a low pivot and drag the zones until the .382 line meets the next low pivot. When using a high pivot, you must click from high to high.

The vertical lines or Time Zones are using the Fibonacci number series to isolate when a particular trend may be coming to an end. The Fibonacci retracement and extension typically try to isolate where a particular trend will end. By using the Fib. retracement and the Fib. Time tool together, you may begin to spot potential turning points by price level and how far along the price has developed since the last time level.

Here's an example...

[kevinmclark]

Is the Fib Circle tool used the same way?

[DuaneG]

Hi Kevin,

No..the Fib Circle is drawn like the Fibonacci retracement and extension. By utilizing a low pivot and drawing upward to a high pivot (or vice versa), you should be able to find some correlations. The Fibonacci circle is a tool that combines the Fibonacci retracements and Fibonacci Time. I'm including a daily chart of FTO to illustrate the anchor points and the resulting price correlations.

P.S. If you could expand upon where you felt the Fib Time Knowledge Base article fell short, we would be happy to re-visit the content and make any necessarily updates...Thanks.

[kevinmclark]

Thanks for the quick response. Your post provided more information about these tools. It would be helpful to others if your examples were added to the knowledgebase.

Thanks again!

Kevin