I've compared indicators and FIB's of present day to December, 2018. I'm posting this publication as a personal TEST to look back upon to see if the POTENTIAL future price drop will be more collocated to percentage or according to FIB RT when comparing to December, 2018. The current POSSIBLE future price action I have drawn on this chart is according to Secondary FIB Re-Trace.
It's also important to consider we may only be in a TIME correction instead of "further" PRICE correction. Meaning, we may possibly stay within a Trading Range (TR) for a while ($7,700 to $8,500). Meaning, the PRIMARY 0.786 FIB may CONTINUE to show support for the price action during a potential TIME correction until the indicators within the 3-Day TF no longer show downward pressure being prevalent.
I've added a Bollinger Band to this chart and made the "basis" (median) YELLOW. I also added POSSIBLE future trek of the yellow "basis."
Posting the chart again (below) in case TradingView's platform scrunches up the cover chart:
Posting this next 3-Day Chart to point out similarities inside the indicators with December, 2018 and present day:
REMINDER: This chart is posted as a TEST. I'll provide updates accordingly to this chart as the price action and indicators play out in the 3-Day and 12-Day Time Frames.
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In case you are wondering: I've shown the 0.786 PRIMARY FIB in the following chart. This is the current PRIMARY FIB in which we have found support for so long.
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I refer to all the other FIB's "between" PRIMARY FIB LEVELS as "SECONDARY" FIB's.
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Information on the LARGE PRIMARY FIB SETUP:
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This is simply a look at my PRIMARY FIB's for you to see the significance the 0.786 PRIMARY FIB has played in history on BitStamp and where we are today in regard to the PRIMARY 0.786 FIB.
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Here's an example of what I mean by a "Secondary" FIB if you see me mention it in the future. It's simply another FIB with coordinates placed between two Primary FIB levels.
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One more example of a SECONDARY FIB and an example of a TRI-MARY FIB. However, the location of this TRI-MARY FIB is NOT a good example. It's used during the possible event we may consolidate within a Trading Range for an extended period of time. It's RARE I use a TRI-MARY FIB. It's mainly used to identify a "Trading Range" we may likely remain for an extended period before legging up or down.
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The following is an example of HOW I use Fibonacci to determine the "next" potential price range target before consolidating into a higher trading range in a Wyckoff Accumulation Schematic. I may provide a video breakdown (step by step) of how I do this in the near future. NOTE: This example ASSUMES the current bottom of $7,714.70 remains the same.
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In case you are wondering, I went into the FIB "Settings" and "un-checked" every FIB level EXCEPT the 0.0, 0.618, 1.0 and 1.618. All other FIB levels were "hidden."
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Here's an example of my Fibonacci technique in which it still worked out EVENTUALLY but we do have occurrences like this in 2016 on occasions:
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This is an example to show you ON OCCASIONS we have an event in which the price action goes up too hard too quickly; resulting in a wick that goes up and back down to quickly to establish a clear and concise resistance level. However, the price action will eventually come back up to define that concise resistance level most of the time by going up in a more controlled/healthy behavior rather than flying up in a too quickly in an unhealthy manner. Once the price action moved up toward resistance in a more healthy manner, it REMAINED at that resistance level for quite a while to DEFINE that resistance level before consolidating once again. This is normal behavior... I simply wanted to point out that this type of price action behavior occurs at times and we need to be aware of this in order to know where to place our 0.618 FIB (at defined resistance) in order to find our future 1.618 extension.
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Yes, I use Fibonacci in an "unorthodox" way. HOWEVER, it works for me...
; )
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Also, every pair has its own personality in regard to Fibonacci. One has to do their research on each pair to find a pattern (personality) of each pair.
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There WILL come a time (at least in crypto) in which your pair will go "parabolic." You still use the same technique in a "bull" market. However, it's during "parabolic" times in which your 2.618 and even the 3.618 extension will be required in conjunction with "sound" indicators to get an idea of which FIB extension is likely next in line before consolidation.
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Here is a quick PRIME EXAMPLE of the 3.618 FIB Extension being reached WHEN the market has entered a PARABOLIC phase before reaching a "Buying Climax" in a Wyckoff Accumulation Schematic.
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I mentioned possible 'Scenarios" (plural) for this publication. The next scenario is the Primary 0.786 FIB maintaining support without a significant dip below it. Which would result in a bit more sideways price action within a tight trading range during this period of downward pressure revealed inside the indicators in the 3-Day TF in a chart above. If that were to occur (The 0.786 Primary FIB holding), the scenario marked in Green could occur.
Thanks for investing your time to look over my publications, Yurlysadoma!
Also appreciate your support!
Stay Awesome!
David
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Hi I know you put your fibonacci levels this way for a reason but I musy say I have never seen anybody put fibonacci this way. I am sure a lot of people like to know how and why, if you don't mind sharing your thinking with us.
1) It just struck me as curious how the first fibonacci has 0 at 2350 and 1 at 3800, and so on. It seems a little arbitrary at first look.
2) I also wonder if it is legitimate for TA purposes to ever draw fibonacci levels or even straight trendlines on a logarithmic chart? If the chart is drawn at a slightly different logarithmic scale, the resulting coordinates would already look different.
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@popovichian,
That will require a separate video unto itself. I'll think about it... Not sure if I will do it on TradingView though... There are actually some other things I've found with Fibbonacci I have not shared on TV. Especially, in regard to finding the TOP of a leg up in conjunction with Godmode and other indicators before a period of consolidation. If I share too much on here, people will feel no need to subscribe to my website in the future.
However, I will share WHY I have my PRIMARY FIB coordinates placed the way they are in log scale chart without the FIB actually being formulated in log scale. But again, that will be a video unto itself.
Thank you, I was thinking similar things after I typed it in. Though I am sure everything you share with us is only going to help your reputation and visibility on tradingview. I shall as always try to absorb as much as I can from you and everyone else :)
WyckoffMode
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@popovichian,
Yes, I can tell you were thinking the same thing. I wrote what I wrote for other potential readers of your post and my response to your post. But yes, I'll work on a 20 minute video within the next 24 hours covering the reason/purpose of my large primary FIB's on a log scale chart with FIB's not set for log scale. However, I do set my SECONDARY FIB's within PRIMARY FIB levels for log scale.
WyckoffMode
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@popovichian,
The following is an example of HOW I use Fibonacci to determine the "next" potential price range target before consolidating into a higher trading range in a Wyckoff Accumulation Schematic. I may provide a video breakdown (step by step) of how I do this in the near future. NOTE: This example ASSUMES the current bottom of $7,714.70 remains the same.
Popovich
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@WyckoffMode, Cool, I was never aware one could project potential targets this way. Thank you for your knowledge!
WyckoffMode
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@popovichian,
I provided more insight in the "body" of my personal comments section (above) with more "rules" one has to go by when using this Fibonacci technique to identify potential future target range of the 1.618 extension in a bull market.
WyckoffMode
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@popovichian,
I decided to do it this way instead of a video. I'm going to keep a very detailed video on Fibonacci for my future website premium subscribers. I hope you can understand.