Intraday trading offers numerous opportunities, and the Auto Fibonacci (FIB) Indicator is one of the most effective tools to add precision to your trades.
Fibonacci levels have been around the market for decades and have forever been one of the hottest and strongest tools to use to capture big moves and spot key levels.
In this post, we’ll walk through how you can use the Auto FIB Indicator for SPY trading, maximizing your profit potential during the trading day.
This is an indicator that was created by our lead options trader Levi, and is responsible for some huge trades inside of our Options Trading Chatroom (Get a 7-Day REE Trial Here)
Now – let’s dive right into what this indicator is, and how to use it to trade big names and indices like $SPY.
Understanding the Auto FIB Indicator:
The Auto Fibonacci (FIB) Indicator automatically plots your intraday low and high, producing a Fibonacci zone that guides your entry and exit points. For example, if you’re trading SPY or QQQ, this indicator helps you identify key levels for price action by calculating retracements and extensions.
Why Use the Auto FIB Indicator?:
By using the Auto Fibonacci Indicator, traders get a clear visualization of where price reactions are likely to occur. These reactions are often at Fibonacci levels, making it easier for traders to plan and execute trades in real-time. This is especially useful when combined with other technical indicators.
How to Trade Using the Auto FIB:
- When the intraday low and high are established, the Fibonacci zones become areas of interest.
- For instance, today’s SPY intraday low was plotted right at the open, and the Fibonacci zone between 56.87 and 57.1 became a prime target for traders to execute long positions.
- If you are an options trader, this method provides a 20-minute preparation window to select strike prices and expiration dates, adding a structured approach to options trading.
Stacked Technical Levels for Higher Accuracy:
What makes the Auto Fibonacci Indicator even more powerful is its ability to overlap with other key levels, such as the previous day’s highs or lows. In today’s SPY setup, not only did we have a Fibonacci level, but the previous day’s high overlapped, giving traders a higher probability of success at that price point.
How to Integrate with Other Tools:
The Auto Fibonacci Indicator can be combined with other technical strategies, such as the Zone Indicator Overlap, which plots additional support and resistance zones. This added confluence of levels makes it even easier to anticipate significant price movements.
Conclusion:
The Auto Fibonacci Indicator is a powerful addition to your trading toolbox. Whether you’re trading SPY or any other stock, having this level of precision can increase your profitability, especially when combined with other technical indicators. If you haven’t already, give it a try, and see how it can improve your trading results.
You can get these indicators with Purchase of our Options Bootcamp come check it out!!
