THE METHOD

The Method is constructed of 7 points. 3 points represent the Method itself, whereas the 4 other points
are the outer limits of that Method. Points ZERO, 50 and 100 are the 0%, 50% and 100% of a price
expansion. ZERO represents the LOWER limit, whereas 100 represents the UPPER limit of this Method,
and 50 defines the "Nodal Core" of this zero-to-100 basic Fibonacci matrix, or Method.
The other 4 points are such that they are distributed symmetrically above and below the Method, such
that:
a) 1,414 and 1,618 are the POSITIVE Fibonacci extensions assigned above the 100-Fib level
AND
b) -0,414 and -0,618 are the NEGATIVE Fibonacci extensions assigned beyond the ZERO-Fib level.

As you learn to apply this simple, profitable trading methodology and see how consistent it works across
markets, you might become tempted to apply it to larger and larger timeframes, seeking ever larger
profits.

Instead, you should keep in mind that the Method exists in the larger and smaller timeframe, and that it
might be most profitable for you to remain at the smaller timeframe, where position sizing and losses
are manageable.

In effect, the Method can exist within another Method, representing a sub-element of a larger Method,
which is in turn its own sub-element, a concept that is referred to as a fractal.
Using this "fractal" concept of the Method, I recommend that you apply restraints and not be tempted
by a larger Method when a smaller Method would suffice to keep you profitable!!

Now, this ZERO-to-100 module a determinant of future price action. In other words, this rectangle is
considered to act as the "FOOT SIZE" of price, and its extent outside of the rectangle its STRIDE. This
means that the height of the area defined by the ZERO-to-100 will determine the extent to which price
will "WALK". Once price breaks out of this module, you will know with greater certainty the extent to
which it will move: Typically at a 1,414 to 1,618-Fib level if it breaks out of the Method above the 100-
Fib level, or -0,414 to -0,618-Fib if it breaks out of the Method beyond the ZERO-Fib level.
The zero point of Fib is when the RSI is below and only below 30. The point 100 of Fib is when the RSI is
above and only above 70.

Entry into the trade by the Method.

The entry rules are the same whether the method is upward or downward.
We trade precisely the candle which actively and clearly breaks the level of 70 or 30 RSI after the
complete formation of the Method.

Management of SL and Targets.

SL : Starting trading in each Method, our SL is at 0,50 of fib. When the Method hits its first target at
1,414 or -0,414 fib, our SL immediately goes to BE ( Break even).
Targets : First target at a 1,414 or -0,414 fib level. We take our 80% of profit. Second target at a 1,618 or
-0,618 fib level. We take the rest 20% of our profit.
Caution : If any Method starts normally by breaking 100 or zero levels of fib, doesn't hit the first target
( 1,414 or -0,414 fib) and returns to 0.50 fib level by hitting our SL, then this Method is invalid and we
will look for another one.

Here is a RULE that is worth applying, here and in any comparable situation:

1 - IF price reached a 1,618-Fib level and retraced to BELOW 0,50-Fib, THEN do NOT assume that it will
rally once more.

2 - IF price reached a 1,618-Fib level and retraced to BELOW 0,50-Fib, THEN use that 0,50-Fib level as a
significant R/S level, if and once price revisits that level from a 1,618-Fib reversal.

3 - IF price reached a 1,618-Fib level and retraced to 0,50-Fib, THEN drawn a line highlighting that 0,50-
Fib level, so that any future price revisiting that level is expected to be met with significant reaction, as
expected of a R/S level.

The 0,50-Fib level, which is yet to be acting upon price, represents a future resistance/support level in
most cases.

METHOD Clarification for the RSI levels :

a) ABOVE 70 means that the specific candle CLOSE at MINIMUM to 70,01 and not to 69,90 .
b) BEYOND 30 means that the specific candle CLOSE at MINIMUM to 29,90 and not to 30,10.
IF that 2 levels are ok THEN the Method is VALID. One last, we get as the 70/30 points the FIRST
CONTACT of the RSI line in the price graph.

Thanks.
Clear?
You can on your own, backtesting the Method on any market (forex, stocks etc.) and at any TF
(timeframe). It works!