[Sniper]

today 01/26/2006 this is what really happened. Three significant pullbacks, the last one on .618% level. Notice the initial wave had minor corrections(pullbacks) in between. That's my kind of wave and that will save your behind many times if you follow that simple rule. Notice also he market was trying to break the 1% level which many times could pose as a strong support/resistance.

In this particular trade, (I didn't take it by the way as I wasn't trading today) you have three elements aligned

1) price - action - solid pullbacks to key fib levels

2) pattern - a qualified wave (40 ticks or more) with minor corrections in between

3)Time - last strong pullback came out at 13:20 pm and the market activity was picking up. Stay away form lunch time and closing time as much as you can.

Once you aligned these three simple rules, your confidence on fibs and your trading will greatly improve.

I am not using time cycles so you could have a better view .Time cycles is just for that, to compare time vs.entry. That's all. They give you a better view as you're now looking at the market thru "squares" instead of a whole.Help you focus on the price action better and how long your trade should last. That way you won't be "trigger happy" a disease some traders have( I was one of them).

for entries, don't "fade" the fibs. It's really dangerous.

Some traders take the next candle after the pullback (if the market continues to the established trend) don't do that. Wait for the next one IF it breaks the higher/high/lower low of the las candle and it's going your way.

[torero]

I agree, I still have a tendency to overtrade, this is why I'm trying to find a time cycle method to keep from exit or entry too early. I'll review again to get a better ideas. There will be questions, no doubt about it.