There is a timing technique using Fibonacci circles/arcs that I employ. It involves finding a good vibration scale and then extending the circles out several rotations using the Fibonacci ratios. Then a vertical tangent line can be taken from the edge of the circle to define a point in time. These points are spots to look for changes in trend (CIT).
In the below chart I have the S&P futures continuation contract on a daily timeframe. I have drawn a set of circles from some time back and have been watching the vertical tangent lines for potential CIT. As you can see the previous line marked a top on 10/31/07. The next tangent line comes in on 2/19/08. Depending on the trend in the market as we approach this date I will be looking for a near term high or near term low to be established on or around this date (plus or minus a day).
So what will I do when the market reaches this point in time? I will wait and trade it with a disciplined GET setup. With this knowledge though I can watch my current equities trades and be prepared for a CIT. This knowledge can be used to gain better entries on new positions or tighten up stops on exisitng positions. In any event let's keep an eye on this point in time. This is a technique that I teach at our advanced 3 day course for those interested.
Good Trading
Craig Russell
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