Trading Setups: How to Draw Fibonacci (David Halsey style)

Trading Setups:

My trading is based on trend lines, daily pivots, high and low bases and Fibonaccis.
Since I always get questions as to how to draw Fibonaccis it seems like the logical place to start. (I base my learning on David Halsey and Eminiaddict and how he draws Fibs.)

Fibonacci Setups

How to draw fibs:

1. 50% Retracement:
Draw from significant swing low to swing high, traditional 50% retracement.



2. Measured Moves:
If price bounced at the 50%, hits -23% and pulls back, draw from the lowest point into the 50% where it bounced, to where it bounced off the -23% target, to get the next traditional 50% retracement, this pattern repeats in a series of measured moves.



3. Extensons:
If price blows out of the -23% target and hits the -61% target, draw an extension from prior swing highs, to where it bounce off the -61% target.




4. Break of a Series of Measured Moves:
If a series of measured moves breaks the latest 61.8 line, draw the first opposing micro.

a. If the first opposing micro works out and hits its target and the original trend breaks down, we will go all the way halfway back of the entire series of measured moves.

b. If the first opposing micro fails, draw the next larger micro in the series of measured moves.