Fibonacci Time Cycles

Refer to the Fibonacci Retracement page.

Calculation Method and Interpretation

Fibonacci Time Cycles are a series of vertical lines spaced by a number of trading sessions equal to the Fibonacci sequence: 1, 2, 3, 5, 8, 13, 21, 34, etc.

Identify on the price chart a period corresponding to a significant trend cycle and position two successive vertical lines from the series aligned with the dates corresponding to the highest high and lowest low (or vice versa) of that period.

The interpretation of "Fibonacci Time Cycles" is that one should expect a significant change in price trend as each successive vertical line is approached.

Example