Combining Fibonacci Ratios With Connors VIX Reversals
Whether
you trade the S&P futures, the Q’s, listed or Nasdaq stocks,
Carolyn Boroden’s S&P
and Nasdaq Price Levels
service
can be one of the most
important
tools for
your success.
The service provides the subscriber with “key†support and
resistance levels based on Fibonacci timing,
on
both an intraday and daily basis. These
levels are updated periodically throughout the day if
needed,
and on
most days,
it is!
In addition to key
Fibonacci support and resistance levels, another
key
to maximizing your success
with Carolyn’s service
is using Fibonacci
Turning Points.
One way in which you
can utilize this aspect to ensure a more effective signal is to look
for a CVR Signal on the
TradingMarkets Market
Bias page.
The most effective way to combine these two powerful signals is
to look for a CVR Signal,
and
then look for a
Fibonacci Turning Point triggering
on the same day or within 1-2 days.
By looking for these
two different trading strategies to converge, you are combining key
elements of time and volatility to generate a potentially more
explosive and profitable trade.
Lets look at two
examples:
A) On May 22, 2001,
the S&P and Nasdaq Price Levels Service indicated a
Fibonacci turning point high for the NDX; that same day we received a CVR
I Sell signal.
Entry
on the
close at 2043,
and exiting three days later on the close at 1961–a
gain
of 82 points.
The
second example occurred on May 30, 2001. According to the service,
there was a potential turning-point low in the NDX.
The following day, May 31 (one
day after the service indicated a potential turning point), we
received a CVR
I Buy signal.
Entry off the CVR I
signal on the close
at 1800,
with an exit three days later at 1924 on the close, a move of 124
points.
In conclusion, by
looking for multiple entry signals by two or more unrelated triggers,
such as the Fibonacci Turning Points and a CVR Signal, you
can greatly increase
the overall profitability of your trading.
The S&P
and Nasdaq Price Levels
service, on its own, can generate some impressive and profitable trade
opportunities. As
a TradingMarkets.com
member,
you have access
a
plethora of tools to make your trading even more profitable by simply
combining the parts to make a whole.
Greg Che
is a
private money manager who has been trading for over 15 years in both the
intermediate-term and swing-trading time frames. His trading incorporates a
combination of momentum, volatility, proprietary technical tools and fundamental
data. He is currently conducting advanced volatility research in partnership
with TradingMarkets CEO Larry Connors. This research will produce refinements to
the Connors VIX Reversal Model which greatly enhances the accuracy and
reliability of timing signals applied to S&P Futures and Options trading.
Greg is a graduate of Northeastern University with a BS degree in Economics.
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