How to Use Our Daily Emini Fibonacci Planning Posts

Jun 23, 2016: 5:56 PM CST

Each morning I post a quick Fibonacci Target Grid for your reference.

We use this chart to plan our trades as price moves “toward” or “away from” our planning levels.

Here’s a reference guide on how you can use these levels and incorporate them into your trading.

In addition to Fibonacci Levels, we’re incorporating other key reference points to give you the best analysis for planning your short-term swing or intraday trades in the market.

Each evening and on weekends, I provide detailed analysis to members about the higher timeframe trends, Daily Chart key reference levels, and of course an updated version of this 30-min @ES Emini Reference Grid.

I post a quick chart in the morning so members can receive real-time updates and for everyone to see these levels (without as much details or descriptions).

You get the benefit of having important reference levels available to you as your plan your trades.

How Do We Develop Our Plan?

In addition to the trend and higher timeframe levels – and any major news events affecting the market – we want to know what important reference levels are in play that day.

We frame our thesis in terms of price moving “Toward” or “Away From” these levels.

Often the first play (trade) of the day – or a series of trades – will develop from price breaking through one of these levels and moving (trading) up or down toward the next target level.

These levels serve as Targets for price to trade TOWARD and also methods to forecast likely future movemetnts as price breaks beyond a level and moves AWAY FROM it.

If these movemetns are in line with our higher timeframe thesis or “Dominant” plan, it increases our confidence that we have developed a successful plan and have “gotten the main idea” correct.

It’s very important to get the main idea correct – where is price moving and how likely is it to continue moving.

From the main idea, we can thus build our trades intraday or on a swing (overnight) basis.

How Do We TRADE with this Information?

If we have the main idea correct, let’s say that price is breaking above 2,070 and likely trading up toward our next level at 2,080, then we have a 10-point potential price movement as our plan or expectation.

We can then drop down to the 15-min, 5-min (our preferred timeframe), or 1-min chart and trade valid trade set-ups that occur as price moves “up away from” 2,070 “toward” 2,080.

It’s rare that price moves straight from one level to another; instead, price “swings” or retraces on its 10 point journey higher.

We like to buy these pullbacks or retracements that develop as price moves “Toward” our targets.

If price then breaks above 2,070, we look to the next upside target which may be 2,090 (for a simple example).

We’ll keep this process going as long as price is moving toward our levels and giving us valid retracement (like flags) or breakout opportunities to buy into a rising market that’s likely to continue rising up toward our next target.

Here’s an example from mid-June 2016:

For quick reference, our planning levels for June 21st were 2,073 as a possible support pivot target and then IF this level held successfully as support, our upside target was 2,088 which was both just under the 2,090 prior high AND the Fibonacci Retracement level.

Pretend that we don’t know the future as we began trading the morning of June 21st.

We know that 2,073 is our Fibonacci Pivot Level.

IF price supports and continues the uptrend, THEN we can look for a movement UP TOWARD the 2,088 target.

However, we’ll be prepared with a breakdown plan IF price instead goes on to break UNDER 2,073.

In the bearish breakdown scenario, we would simply look to trade bearishly on a movement “Down Away From” 2,073 “Toward” our lower support target at 2,062.

In real time, price gapped up, retested the 2,073 level, and then began to depart (move AWAY FROM) this level.

Again, we have 2,088 as an upside future target IF price does continue the trend and move “away from” our pivot.

We will look to buy retracements or breakout trades that occur in real time throughout the rest of the session and even into the next session if needed.

While the smaller intraday bullish trades were successful on June 21st, ultimately price did continue higher as expected and fully achieved – and slightly exceeded – our 2,088 target.

A swing trader could have held overnight to achieve the full target while an intraday trader had more trades that developed along the way.

While not featured in the example above in terms of trades, price did reverse and trade AWAY FROM the 2,088 level.

Real World Examples

You can see the real-time updates for reference for this period:

Bullish Surge into Target Emini Level Planning June 20th

Bouncing Between the Fibonacci Levels @ES Update June 21st

Members will receive detailed analysis, Dominant/Alternate Thesis Planning levels, and additional educational/reference commentary each evening.

For more information on how membership can benefit you, check out our information and sign-up page.

Keep in mind that these levels and targets will stay relatively consistent but do change.  I’ll be sure to update the levels and plans for you when that occurs.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

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

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

9 Comments

9 Responses to “How to Use Our Daily Emini Fibonacci Planning Posts”

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