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The Simpleton's Fibonacci

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As I did with PTR ranges, I will now want to plot support and resistance pivots for the Immediate Trading Range (ITR) using the same parameters:

*These calculations can be made live using our online Trading Range Calculator at http://www.kingcambo.com/rangecalculator/

I can now plot my ITR Support pivots initially as 1690.78, 1683.22, 1671.00, 1658.78, 1651.22 and 1619.22.

Likewise, I can anticipate ITR Resistance pivots as being 1683.22, 1690.78, 1703.00, 1715.22, 1722.78 and 1754.78 respectively.

I am expanding now to a 13-min chart to show a true picture of what transpired:

Now, this is where things get interesting, if not downright amazing. I made my initial calculations at 10:51AM because that was the first point I had the two necessary Market Structures to form the ITR. Based on what I now have as “range,” my first two projected support pivots are 1690.78 and 1683.22.

What happens approximately 20 minutes later? The first MSL forms exactly on the 1683.00 projected ITR pivot.

Note also, that our initial MSH resistance of 1703.00 turned out to be resistance for the entire day. The second attempt at higher highs fails at 1699.00 – in terms of index points, basically a stone throw.

This idea of working with Immediate Trading Ranges (ITR) is a practical method of giving yourself a road map for TODAY’S expected trading.

Now that I have mapped out both overnight and intra-day ranges, I always want to be conscious of the GREATER TRENDS. These are, in order of importance: the Greater Trading Range and the Dominant Trading Range.

Greater Trading Range: (GTR)

Greater Trading Range as its name suggests, is important because it defines Market Structure levels and triggers over recent continuous trading sessions.

Remember that as a trader, I am a mere hybrid of everything I have learned. And for my style of trading, I want to know where these Market Structures are occurring across a continuous 13-min basis.

So I will use one 13-min chart, which contains three days of continuous intra-day data. I eliminate from that chart any post or pre-market data to filter out the “noise.” This is because I want my calculations based to give me pivots as an extension of ITR, as I explained above.

It is three (3) days (major Fibonacci) of thirteen (13) minute (major Fibonacci) because everything I look at is with regard to Fibonacci.

So let me start with a simple chart so I can show you what I am looking for:

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"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation" ----from REMINISCENCES OF A STOCK OPERATOR