Use the 61% and 78% Fibonacci percentages for entries and targets.
Brach Zones happen on all time frames whether price is trending up or down.
They can help you measure what price action has done and also suggest what it may do next...
Focusing on these two percentages came from a futures trader named Brach who frequented daCharts.com. (circa 2005)
He was adept at combining support/resistance, P/A waves and triangles, along with Fibonacci to trade futures.
Another accomplished trader, NQoos came up with the term Brach Zone.
He was adept at combining support/resistance, P/A waves and triangles, along with Fibonacci to trade futures.
Another accomplished trader, NQoos came up with the term Brach Zone.
I adapted parts of Brach's methods and created this picture explanation around 2005.
To this day I continue to see the validity of the method described...
To this day I continue to see the validity of the method described...
03/30/2016...BZs are natural Reversal Areas
06/30/2016...BZs and reaction to news events
09/13/2016...BZs can define other patterns
BZs as a projection tool
07/03/2015...Happy 4th of July
Celebrating our Independence Day
05/22/2015
11/28/2014...single session
Price Action, Patterns, Signals = Reversal...the BZ used as a target area:
03/11/2014 BZ Target level
Combined with other technical patterns/signals...this chart covers five 24 hour sessions in the NQ.
11/4/2013 BZ levels in a down trend
The 61.8% to 78.65% levels are high lighted with boxes at the reversal areas on a very 'fast' 60 tick
YM chart illustrating how often these levels can come into play...
12/21/2015...BZ retrace levels
You can use Brach Zone Fibonacci levels to project target areas for potential reversals..
Multiple BZ areas often end up describing a triangular consolidation pattern...
3/06/2014
You can use Brach Zone Fibonacci levels to project target areas for potential reversals..
Multiple BZ areas often end up describing a triangular consolidation pattern...
3/06/2014
More examples of the BZ pattern...
3/20/2014
6/13/2012
BZ projections for some fun...
BZ A-C is the target if the major channel breaks down -
"Sell in May and go away"
into the fall which historically is a good long entry point.
BZ B-C is the target of the shorter term minor channel -
the lowest point for a reversal if the up trend is to continue
"the do-or-die point"
01/15/2015...Another BZ fun observation...
The RUT was playing pong with recent Brach Zone levels...a doozy of a doji too.
01/15/2015...More BZ projections with patterns
Below the ES is dropping out of a rising wedge with the BZ beckoning...
Its interesting to me that the longer term Oct thru Dec BZ retrace area co-insides with the shorter term
Fibonacci extensions from December's Low-to-High run.
Also interesting is the alignment of the BZ target area with August's low...
Perhaps a channel might begin if price does run down there and reverses...would make that area a 4-of-5 wave...
5/22/2012
The next two charts are examples of using various traditional T/A tools and BZ Fibonacci levels to help make sense of Price Action. I posted the charts and comments (in bold/italics) on the iHub board at 8:15 in the morning
Bulls - a measured move of yesterday's up trend suggests a 15470 target today.
Bears - the H&S target (15327) at the lower area of the Brach Zone has not yet been reached.
If it can't beat 15385, the potential measured move down sets a target of 13315 for today.
(Price is attempting to beat the recent HH @15385 as I type)
(15 minutes later)
Looking like the Bulls have it.
Some days you are in the Zone
06/27/2013
Another In the Zone day
___________________________________
12/01/2012
BZ projections for some fun...
BZ A-C is the target if the major channel breaks down -
"Sell in May and go away"
into the fall which historically is a good long entry point.
BZ B-C is the target of the shorter term minor channel -
the lowest point for a reversal if the up trend is to continue
"the do-or-die point"
The RUT was playing pong with recent Brach Zone levels...a doozy of a doji too.
Below the ES is dropping out of a rising wedge with the BZ beckoning...
Its interesting to me that the longer term Oct thru Dec BZ retrace area co-insides with the shorter term
Fibonacci extensions from December's Low-to-High run.
Also interesting is the alignment of the BZ target area with August's low...
Perhaps a channel might begin if price does run down there and reverses...would make that area a 4-of-5 wave...
5/22/2012
The next two charts are examples of using various traditional T/A tools and BZ Fibonacci levels to help make sense of Price Action. I posted the charts and comments (in bold/italics) on the iHub board at 8:15 in the morning
Bulls - a measured move of yesterday's up trend suggests a 15470 target today.
Bears - the H&S target (15327) at the lower area of the Brach Zone has not yet been reached.
If it can't beat 15385, the potential measured move down sets a target of 13315 for today.
(Price is attempting to beat the recent HH @15385 as I type)
Looking like the Bulls have it.
Another In the Zone day
12/01/2012
The chart below is another example of how I use the BZ : On the USO daily chart below I've drawn a Fibonacci grid from the low in June to the high in September. It looks as though price has retraced much of that rally and may be consolidating after spending time bouncing in and out of the Brach Zone.
If we speculate that support has been found at the Oct-Nov lows and a reversal is imminent, then we can project a rally that could retrace much of the previous down trend and run towards the 'new' Brach Zone area up around $35 to $36...the 'new' Fibonacci grid was drawn from the high in September to the November low.
In this example the daily chart shows MACD histogram divergence between September and November...
Plus the green down-slopping trend line (drawn using a weekly chart) seems like it may be the line to beat
as price heads for the next BZ target in the $35 to $36 area.
02/13/2013 Here's the same chart as above but updated - it shows the rally
into the projected BZ Target which was identified last November.
Plus the green down-slopping trend line (drawn using a weekly chart) seems like it may be the line to beat
as price heads for the next BZ target in the $35 to $36 area.
02/13/2013 Here's the same chart as above but updated - it shows the rally
into the projected BZ Target which was identified last November.
The weekly USO chart below is another look at measuring BZ retraces along with a little P/A describing a 5-wave decline on the left side...
Note the different tops used for BZ B and C ... Usually I'll use the higher-high at B for the start point but I have no hard and fast rule for where to start and end the BZ grids.
12/05/2012
A year in the INDU
An example of using the Fibonacci grids to measure retrenchments and for projecting BZ (Brach Zone) grids to extrapolate where we might trend into the future. Also included on the chart are examples of using P/A (price/action) and Divergence.
Note the different tops used for BZ B and C ... Usually I'll use the higher-high at B for the start point but I have no hard and fast rule for where to start and end the BZ grids.
12/05/2012
A year in the INDU
An example of using the Fibonacci grids to measure retrenchments and for projecting BZ (Brach Zone) grids to extrapolate where we might trend into the future. Also included on the chart are examples of using P/A (price/action) and Divergence.
3/07/2013 2B Dragon and BZ initial target
Here's an example that examines multiple rational using some of my favorite T/A patterns in order to enter a position, to project targets and to set stops...This Stock just hit my radar today...the following is my T/A take on it's prospects for making money for me...just for grins I suggest you put this stock in a watchlist and check on it once in a while - to see if my T/A has any merit.
After a 5 Wave Wedge decline, TSU printed a very well defined 2B Dragon double bottom. I drew a Brach Zone retrace grid from the high in June 2012 (which is the top of the dragon's tail) to the low in October (the dragon's rear feet) to see a potential 1st target area of the 2B double bottom.
The price consolidation area (the dragon's head) formed at resistance (at the dragon's hump level) before breaking upwards...
Price then broke through the longer term resistance Over-Under-Support-Resistance at Round Number $20. Having broken above and having retested that area this past February, the way is cleared for the up trend to continue towards the BZ target area...The BZ 78.6% upper limit happens to co-inside with an Unfilled Gap from early July of last year, which is the 'logical place to expect major resistance before price continues to the eventual projected target @ $28 (the top of the dragon's Tail).
5/13/2013 3xD reversal and BZ target
Here's another example of the usefulness of BZ Fibonacci levels for gauging target possibilities. Although there was no Trend-Line-Break-Retest for an limit order buy entry, the 'perfect' way to trade this was to enter early, under the trend line...or the use of a trailing Buy-Stop, at the down trend line just above the developing bar...Use these two methods IF the 3xD is spotted early enough...
But even if you are a little late, a Buy-at-Market would have worked...and a tight initial stop-loss could still have been placed under the recent low, protecting you in the event that the Divergence and Trend-Line-Break entry signals end up failing...
