Fibonacci Confluence on NASDAQ and Dow Jones

Mar 19, 2009: 11:33 AM CST

A couple of readers have also asked me to post the Fibonacci Confluence Levels (grids) for the NASDAQ and the Dow Jones Index currently.  Here is a quick, mid-day update on these levels (which, to me, are not as clear as the confluence on the S&P 500).

NASDAQ Daily Fibonacci Confluence:

The grid logic is roughly the same as this morning’s “Fibonacci Confluence in the S&P 500” post.  Fibonacci grids are taken off the November, January, and February highs and all drawn to the recent March Lows to find confluence (overlap).

The NASDAQ Index has already blown through its key Confluence Zone at roughly 1,465, though it appears to be coming back to this zone in today’s action, having found resistance at its second-level confluence zone (the 50% from November and 61.8% from January).

Dow Jones Daily Fibonacci Confluence:

I’m not picking up much Fibonacci Confluence (at least, not as clearly as we are in the S&P 500) in the Dow Jones at the moment, as the confluence ranges from 7,601 to 7,757 (a 150 point spread really shouldn’t be called ‘confluence’).

However, the Dow is holding resistance just beneath these levels.

Once again, Fibonacci is only a tool for market analysis – there is no guarantee these levels will hold but sometimes it can be quite useful in your analysis and trading.

Corey Rosenbloom
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

6 Comments

6 Responses to “Fibonacci Confluence on NASDAQ and Dow Jones”

  1. Anonymous Says:

    Hey Corey,

    Great work.

    Curious as to what program or software these charts are coming from?

  2. Corey Rosenbloom Says:

    Anon,

    Thanks!

    TradeStation with proprietary indicators. Colors are based on a volatility function of the Average True Range.

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  6. Stock Screener Says:

    I never learn how Fibonacci Confluence works, this is a nice introduction for me. I need to pick up a technical analysis book on this topic to learn more.