The fibonacci method is using the .50 and .618 retrace tool. The markets often retrace these numbers in a very narrow trading range. As often as the other method.

This could also be called the -1-2- method.

Due to the amount of space the lines take up to illustrate. I will not be posting every one, but the trader should be able to comprehend the method or idea behind it. I will point out others to look at.

What they all have in common is an .50 to .618 retrace. What I like to do is enter on the half way mark of those two numbers. The only time I do not is that I require at least a half a point above the .618 and that makes my entry higher. I would rather risk missing the trade then enter into a highly loser situation.

One could risk more, too. Study it and decide for yourself.

These trades would have averaged close to six hundred apiece. Still within the ball park.

Let me say. If you miss a trade. Blow it off and wait for the next one. There is plenty of decent trades to be had with nice profits off of one point risk. It is all in training the eye to catch them before the fact.

Happy Day trading to you.