Fibonacci Number and Ratio Analysis
between points A and C, as projected from point C. The possibility of a bullish
reversal at point F is further supported by a test of the lower Bollinger band,
which represents potential support. This bullish indication is also corroborated
by an oversold indication on the cycle‐tuned stochastic oscillator. The presence
of an uptrend line further increases the expectation of a bullish reversal around
point F. The trader may now initiate a long entry at the test of the uptrend line or
wait for confirmation of an upside move in price before pulling the trigger. Once
again, we see the time ratio projection of a potential reversal being supported by
a confluence of bullish indications.10.22.8 Fibonacci time Zone projections
Fibonacci time zone projection is yet another way to forecast potential tops and
bottoms in price. Fibonacci time zone projection is rather unique in that it is a
combination of Fibonacci number counts and ratio projection. In essence, it rep-
resents the counting of ratio multiples, based on the Fibonacci number series. See
Figure 10.98.
When applying Fibonacci time zone projections, we may set the initial zone
by measuring from significant peaks and troughs, or inflection points, to be more
general. The initial zone, upon which all subsequent time zone ratio multiples will
be based, may be set from:■ (^) Peak to Peak
■ (^) Trough to Trough
■ (^) Peak to Trough
■ (^) Trough to Peak
In Figure 10.99, we see Fibonacci time zone projections accurately forecasting
tops and bottoms on the hourly Copper chart. The initial zone was set up using
Figure 10.98 Fibonacci Time Zone Projections.