I've had a few of you guys asking me about how I determine my corrective/reversal points per fib, and since I had a great trader teach me the ropes on how fib moves, I thought I would do the same.
Follow each colored arrow to its respective fib. These are typical fib patterns to see on retraces.
The same happens in bear markets.
Also, you will need to apply these rules to the respective range.
None of this is guaranteed to happen also.
Studying fib will quickly teach you that there's fibs within fibs, so that's why you really have to measure each level and measure all ranges.
This becomes easier through time and as you apply it to your trading. Best practice is to just study retraces.
Fib IMO works best with an oscillator of choice, and an advanced level of understanding volume within price action.
Lastly, understand -- not even fib is perfect and I did not list every typical scenario that fib retraces show.
These are most of them though.
If you understand the power of the 618 and the 382 (618 inverse), then you're well on your way.
*not an indication to buy or sell*
*use at your own risk*
Educational Purposes Only.
Goodluck.
Follow each colored arrow to its respective fib. These are typical fib patterns to see on retraces.
The same happens in bear markets.
Also, you will need to apply these rules to the respective range.
None of this is guaranteed to happen also.
Studying fib will quickly teach you that there's fibs within fibs, so that's why you really have to measure each level and measure all ranges.
This becomes easier through time and as you apply it to your trading. Best practice is to just study retraces.
Fib IMO works best with an oscillator of choice, and an advanced level of understanding volume within price action.
Lastly, understand -- not even fib is perfect and I did not list every typical scenario that fib retraces show.
These are most of them though.
If you understand the power of the 618 and the 382 (618 inverse), then you're well on your way.
*not an indication to buy or sell*
*use at your own risk*
Educational Purposes Only.
Goodluck.