Hello! Sorry for not providing any useful content, still a beginner. Just a quick question: Did I draw these FIB lines correctly? Regardless of whethers it's right or wrong: How do you (experienced trader :D) pick the right highs and low according to the chosen time-frame? Another question: Do we best use the Stoch RSI indicator in accordance with the FIB levels or is there a better indicator than the Stoch RSI?
Hi @MuMPiTz your fib retracement looks fine as you are looking to get the retracement from the May high.
The tool is useful to look for algo targets and to assist in plotting your expectation for the waves as they form.
In the case of your example, you are positioning your retracement based on the view that you have a complete 5 wave structure down from the top and you are using the fin retracement along with Elliot wave rules to make assumptions as to where the following retracement could be.
What makes a difference though is whether your EW count is for the bulls or bears in which case you could be taking the view that the wave we are currently in is an impulse wave heading up to hopefully start a new long term bull cycle, or it is a corrective wave followed by another wave down. In each case you would use the fib retracement differently.
A great source of knowledge on all this is the Trade Devils who you can keep up to date with on YouTube. Also Philakone is a heavy social user and while his style is to scalp trades (which you need to take account of if you are following him) he has a great set of lessons on you tube running you through from RSI use to Elliot Wave etc
Good luck
MuMPiTz
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@GuyWallace, thanks a lot, really appreciate it!!! :)
The tool is useful to look for algo targets and to assist in plotting your expectation for the waves as they form.
In the case of your example, you are positioning your retracement based on the view that you have a complete 5 wave structure down from the top and you are using the fin retracement along with Elliot wave rules to make assumptions as to where the following retracement could be.
What makes a difference though is whether your EW count is for the bulls or bears in which case you could be taking the view that the wave we are currently in is an impulse wave heading up to hopefully start a new long term bull cycle, or it is a corrective wave followed by another wave down. In each case you would use the fib retracement differently.
A great source of knowledge on all this is the Trade Devils who you can keep up to date with on YouTube. Also Philakone is a heavy social user and while his style is to scalp trades (which you need to take account of if you are following him) he has a great set of lessons on you tube running you through from RSI use to Elliot Wave etc
Good luck