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Fibonacci

GameStop and Fibonacci: It's About TimeThis is my first attempt at publishing a video on TradingView, so hopefully it works. I wanted to put together something educational about fib channels and why I like to use them. They're not a silver bullet, but they do tell you a lot about where to expect support and resistance because the chart has a very good memory, and you can see this play out on pretty much any instrument, including cryptocurrencies. I follow NYSE:GME closer than any other ticker, so this video is about my philosophy on the fib channels that I have been using on the GME chart and talking about on the Echo Chamber Podcast. Hopefully this adds a little more context to that discussion, how the flat price levels are not always the only thing that matters, but taking time-based trends into account can make a big difference in your analysis and understanding of price movement. Happy to hear people's thoughts on my crayons 🖍️ which color should I eat next? Since this is a bit of a longer video, here's an AI summary of the content with timestamps: Introduction 00:00-01:05 I introduce the topic of explaining my TradingView chart, which has many colorful lines. I clarify that I didn't manually draw all the lines, but used Fibonacci channels that only require selecting 3 points. Explaining Current Chart 01:05-04:33 I show my current GameStop chart, explaining various trend lines and Fibonacci channels. I demonstrate how to adjust the Fibonacci channel points to analyze different price movements. Fresh Chart Walkthrough 04:33-11:57 Moving to a clean chart, I explain global chart items, including trend lines from major tops and bottoms. I discuss dividend-adjusted vs non-adjusted charts and explain the "Gandalf line" of support. Fibonacci Channels Explanation 11:57-24:54 I provide a detailed explanation of how Fibonacci channels work, demonstrating how to draw them and interpret the resulting lines. I show how these channels can describe price action across long time periods. Additional Examples 24:54-33:44 I show more examples of Fibonacci channels applied to GameStop's entire price history. I discuss how these channels can provide insight into potential future price movements and support/resistance levels. Conclusion 33:44-34:40 I summarize my thoughts on GameStop's current price action in relation to the Fibonacci channels and support levels identified. Some Quotes "I find them mathematically interesting." 11:54 - Referring to trend-based Fibonacci tools. "Math is your friend here. But you don't have to do the math, you just can use tools that will help you." 17:19 "Price is fractal in nature in that patterns are repeating and Fibonacci is everywhere." 17:19 "Things like history repeats itself. It's just a question of when, not if." 24:30 "The point I want to drive home here is that when we start to get a little bit more granular here, and this is why I have lots of crayons on my chart." 28:34 Key Tips/Concepts Fibonacci channels can be powerful tools for technical analysis, providing insight into potential support and resistance levels. These channels can sometimes describe price action across very long time periods, even when drawn based on recent price movements with thoughtfully selected endpoints. The importance of considering price, time, and volume in technical analysis, as demonstrated by the "Gandalf line". The value of using multiple timeframes and chart types (dividend-adjusted vs non-adjusted, trading hours only vs extended hours included) to gain a more complete picture of a stock's price history. (Editorial note: something I didn't cover in the video, but the difference between log scale and linear scale sometimes will make for an interesting story on trendlines and fib channels too. I prefer to keep my chart in log scale, but will toggle between log and linear occasionally to see if there's something interesting there in the lines already drawn.) The concept of fractal nature in price movements and how patterns tend to repeat over time.
NYSE:GMEEducation
by BoilerPaulie
2
Fibonacci: Theory and Practice (Part 1) RetracementsThe Fibonacci proportions are a widely used technical tool in financial markets. They are based on the Fibonacci sequence, a numerical series introduced to the West by the Italian mathematician Leonardo de Pisa (13th century) after his travels in the Mediterranean (especially in Béjaïa, Algeria): 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144..., where each number is the sum of the two preceding ones. Although Ralph Nelson Elliott incorporated concepts related to Fibonacci ratios in his wave theory (published in 1938), it was Charles Collins who first explicitly used price retracements and extensions in the 1940s. I will divide the content into three parts to enhance understanding of this approach: Fibonacci Retracements, Fibonacci Extensions, and Harmonic Alignments. Fibonacci Ratios In trading, the sequence itself is not used directly but rather its ratios, which approximate natural proportions observed in nature, art, and price patterns. The ratio of any number to the next higher number approaches 0.618 after the first four numbers. For example, 1/1 is 1.00, 1/2 is 0.50, 2/3 is 0.67, 3/5 is 0.60, 5/8 is 0.625, 8/13 is 0.615, 13/21 is 0.619, etc. (pay attention to the value 0.50). The ratio of any number to the preceding lower number is approximately 1.618, or the inverse of 0.618. For example, 13/8 is 1.625, 21/13 is 1.615, 34/21 is 1.619. The higher the numbers, the closer they get to 0.618 and 1.618. The ratios of alternate numbers approximate 2.618 or its inverse, 0.382. For example, 13/34 is 0.382, 34/13 is 2.615. 0.786 is the square root of 0.618. Personal Perspective on Fibonacci Proportions None of the ratios we will explore below possess magical properties. The truly decisive factor is price action, which acts as a mirror of the collective psychology of investors. Fibonacci proportions are excellent for highlighting proportionality and harmony, aspects that directly influence participants' decisions. This is where the importance of this approach lies. Fibonacci Retracement Adjustments In Figure 1, you can see how to correctly draw Fibonacci retracements in an uptrend: from bottom to top, from the low of the impulse (1) (including the lower wicks or shadows) to the upper high (2) (considering its wicks or shadows). The clearer and more defined these impulses are, the greater their influence on market participants' psychology. Clarity ensures better results when studying tools, indicators, or price action. I discard the 0.236 level in my trading, but you can include it and experiment. Timeframe is also important to consider: applying Fibonacci on 5-minute charts, for example, would be like trying to control the ocean with a measuring tape. As I demonstrated in the article “Timeframe is Everything” , lower timeframes degrade the success rate due to the greater influence of news and rumors, high-frequency trading, lower capitalization, and interests, etc. If the drawing is incorrect, the values will not match those in the image, and the diagonal line will point downward. Figure 1 In Figure 2, I show the correct drawing of Fibonacci retracements in a downtrend, from top to bottom, from the high of the impulse (1) (including the lower wicks or shadows) to the low (2) (considering its wicks or shadows). If the drawing is incorrect, the values will not match, and the diagonal line will point upward. Figure 2: Psychology of the Ratios Ratio 0.382 This ratio is extremely useful for avoiding premature entries in favor of the trend. In my experience, in most cases, we should wait for the price to touch the 0.382 level unless a consistent price formation justifies a trend continuation. This level indicates a typical retracement zone, making it ideal for detecting "pauses" in strong trends. It is also necessary that entries at this and other ratios we will study are validated by price action and context. In Figure 3, you can observe how the price offers an excellent reversal opportunity at the 0.382 Fibonacci level. A previously respected 50 EMA and a strong point like the 50% of the body of a weekly engulfing candle increase the robustness of the zone. The confirmation of price action manifests in increased volumes that may signal a likely reversal and a bullish engulfing candle. Figure 3 I won’t provide examples in downtrends for this level, as the buying pressure inherent in market nature makes short entries based on the 0.382 level very unstable. Thus, this ratio is primarily evident in uptrends. Ratio 0.50 It is generally believed that this ratio does not belong to the Fibonacci sequence, but 0.50 is a harmonic starting point in the progression. It marks a balance between supply and demand, thus serving as a psychological magnet that tends to attract the price while delineating a battle zone between buyers and sellers. In Figure 4, you can see the correct use of the level: The 0.50 ratio is perfectly aligned with the presence of a 50 SMA and price action elements like a ceiling test , offering extremely robust resistance. An island gap pattern is an excellent reversal signal to confirm a short entry. Figure 4 In Figure 5, we observe the alignment of the 0.50 level with the presence of a large gap acting as robust support. Additionally, the level coincides with the 50% of the body of a bullish engulfing candle on a weekly chart, adding significant confidence. The price action would confirm an entry with a large bullish engulfing candle. Figure 5 Ratio 0.618 (Golden Ratio) The 0.618 ratio is a universal "equilibrium point" in crowd psychology; the place where many investors expect a bounce, as it represents a deep but not exhaustive correction. Studies and tests (such as those by Robert Prechter in Elliott Wave Principle ) show that the 61.8% level appears in up to 70% of significant corrections in indices like the S&P 500 or Dow Jones, while behavioral economists argue that its "success" is more due to confirmation bias than strict causality. In Figure 6, we observe how the golden ratio (0.618) aligns with a high order volume zone (volume profile). The noticeable weakness in price action, graphically represented in oscillators like the MACD (bearish divergence), combined with a volume spike, could provide clues about a likely rejection in the zone. Figure 6 In Figure 7, we observe a bullish example where the 0.618 level aligns with a strong support generated by accumulation. Note how this zone shows a high order volume (volume profile). This support was also backed by a 20 EMA on a weekly chart. The price action would confirm the entry after several rejection candles. Figure 7 Ratio 0.786 This is my favorite Fibonacci retracement ratio, and I use it exclusively to seek reversals in uptrends. It indicates trend weakness, but I like to consider it a high-probability reaction zone, as selling pressure in such a deep correction tends to be weak, while large participants or institutions may see a good opportunity to buy low. I apply this ratio exclusively to double bottoms, as seen in Figures 8 and 9. Figure 8 Figure 9 In Figure 8, the 0.786 level aligns with the 50% of a monthly engulfing candle and a large gap visible on the daily chart. Additionally, volume and a large engulfing candle pattern would have confirmed the entry well. Figure 9 shows an alignment between the 0.786 level and a strong support on the daily chart. In the same zone, a 20 EMA on a weekly chart coincides. The price action confirmation manifests in compression and an explosion of bullish volatility. Fun Facts 1-Leonardo de Pisa (or Leonardo Pisano) was born around 1170 in Pisa, Italy, and was the son of Guglielmo Bonacci, a commercial official working in North Africa. The nickname Fibonacci comes from "filius Bonacci," which in Latin literally means "son of Bonacci." He signed his works as "Leonardo, son of Bonacci, Pisan," but the term "Fibonacci" was shortened and popularized centuries later. 2-The Fibonacci numerical series actually dates back to ancient Indian texts (such as those by Pingala in the 2nd century BC, used for poetic meter). 3-Leonardo de Pisa popularized the numerical series in Western Europe through his book, Liber Abaci (1202), where he used it to solve practical problems, such as rabbit population growth (the famous example: a pair of rabbits produces a sequence of births generating the numbers 1, 1, 2, 3, 5, 8...). Conclusions Fibonacci proportions are a valuable complement, but not the holy grail. In my strategies, I find them extremely useful and feel comfortable incorporating them in specific contexts, though not all systems require them. For example, I like having a Fibonacci at hand in patterns like double bottoms to identify key supports or when a price overextends or retraces strongly, delineating potential reversal zones. I recommend that investors avoid chasing mystical numerical alignments and maintain a logical approach to each tool, method, or pattern studied. Final Note If you want to take a look at my analysis record, you can find my profile in Spanish, where I transparently share well-defined market entries. Send your good vibes if you enjoyed this article, and may God bless you all.
NASDAQ:TSLAEducation
by Especulador96
TOP down analysis and Scaling the Range setups.Hey whats up traders, lets have a look to the Timeframe alignment's, its a key point to clarity in the setups. Price is fractal and what is happening on one timeframe we can find on lower timeframe also. 📌 Why it's important to use correct timeframes? - We should use timeframes based on what type of traders we are, not just random. - We cant trade M5 reversal from Monthly etc. There must be structured approach. 🧪 Know yourself Based on your lifestyle, patience. Decide how much time you want to give to trading. But remember - Trading is not employment. You are paid for best decisions & being in the right position, not for your time and effort. More trades are not equal more profits. Full time trading and day trading doesn't mean trading every and sit whole day behind PC. 🧪 What type of trader you are ? • Position Trader - Trade the monthly range. • Swing Trader - Trade the weekly range. • Short Term Trader - Trade the daily range. • Day Trader or Intraday Trader - Trade the daily candle's range. • Scalper - Trade the hourly range. 🧩 Im mentioning ranges, because it's core of mechanical strategy, which I explained in the post below. 🔗Click to the picture below to learn more 👇 ‼️ When analyzing the market don't start, just with the range. It's just one element of the trade. We need to understand whole market context. Always go step by step , rule based analysis of trade elements with correct timeframe sequences. 🧪 Timeframes of trade elements • Trend / Bias - Higher Timeframe • Ranges - Higher Timeframe • Key Levels - Higher Timeframe • Structure - Intermediate Timeframe • Profiling AMD - Lower Timeframe • Order Flow / Entry - Lower Timeframe 📌 Bullish Scenario 📌 Bearish Scenario 🧪 Whats your timeframes? Position Trader - Monthly Key Level + Range- Daily Structure - H4 Profiling + Entries Swing trader - Weekly Key Level + Range- H4 Structure - H1 Profiling + Entries Short term Trader - Daily/H4 Key Level + Range- H1 Structure - M15 Profiling + Entries Day Trader / Scalper - H1 Key Level + Range- M5 Structure - M1 Profiling + Entries Im most confident in Swing Trading and Short term trading, hence I trade Weekly and Daily ranges. I use monthly ranges for HTF bias, but I will explain this later. 🧩If you apply these timeframes correctly, you will be easily buying lows and selling highs. I have explained this in this post below. 🔗Click to the picture to open lean more 👇 This framework by itself is good enough to be successful in the trading. I suggest you to create your own trade checklist and do always step by step analysis. Remember nothing comes easy to master anything takes time you need to give it at least 6 months, without jumping from strategy to strategy. Use Trading journal to collect information, without it you will not improve and will repeat the mistakes. To fasten the process run backtests at least 300 examples. 🧩Dont forget that whole concept is based on the liquidity, you must understand it also. I have explained in this post. 🔗Click to the picture to open lean more 👇 🧪 Power of scaling If we look to the 1 minute chart and Monthly chart we will not recognize what chart it is. Patterns are playin on all timeframes. That is why is 100% mechanical approach based on liqudity and candles - Open , High, Low, Close powerful. What Im going to show you now you cant be achieved with diagonal drawings or random patterns. 📍First lets start with our basic knowledge If the range is manipulated the CLS sequence is suggesting that opposing side of the range will be reached. It can be by just quick move - Model 1, or we can get Model 2 opportunity. 📍 Bullish continuation setups Model 1 - Entry after manipulation - 50% target Model 2 - Entry on pullback on level between 61.8 - 80% pullback 📍 Bearish Continuation setups Model 1 - Entry after manipulation - 50% target Model 2 - Entry on pullback on level between 61.8 - 80% pullback 🧩Dont forget that best enties comes in trend on the right pullbacks.I have explained in this post. 🔗Click to the picture to open lean more 👇 🧪 Now lets use this knowledge as a fractal I have clarified our Range timeframes for each type of trader, but you definitely should not skip bigger timeframes even if it's not your timeframe. Knowing the sequence from HTF give us a bias perspective so we can trade LTF ranges within HTF Range Models. 📍 Bullish LTF Range within HTF Range Analyze HTF range and define models, then drop it to your TF and trade your ranges with the HTF range. Always follow the same process only on the LTF - Lower timeframe. 📍 BearishLTF Range within HTF Range Analyze HTF range and define models, then drop it to your TF and trade your ranges with the HTF range. Always follow the same process only on the LTF - Lower timeframe. Now, practice that, you have one trading framework which you can apply to all timeframes and scale it down, means you are looking at the markets with always same approach and this receptiveness give you confidence and clarity = MASTERY ✨Trading Mastery is reflection of your life Have a longterm plan, No Alcohol & Drugs, Ignore others, Focus on your journey , Backtest regularly, Review your weeks, Journal mistakes, Exercise, Sleep well, Read books, Walks in nature (no phone) , Meditate, Reduce social media time, Spend time with family, Live Life. Trading is hard, but not impossible. I believe in you 💪 David Perk aka Dave Fx Hunter
GEMINI:BTCUSDEducation
by David_Perk
21
Complete system for Day & Swing TradersHey whats up traders, Today Im going reveal simple but effective way to analyze and trade any markets - Stocks, Indices, Forex and Crypto. This thing works on everything because it's based on liquidity manipulations. It's 100% mechanical structured aproach with fixed targets and defined. So unlike traders who trade various patterns and have on charts different patterns and diagonal subjective lines, you can backtest it and measure its and yours execution performance to get your statistical data for Risk Reward and Winning Ratio. ‼️Once you obtain such data from data sample large enough you will also solve biggest trading problems - FEAR, GREED and OVERTRADING. Why ? 📊 Because if you know you win rate is 60 - 70 % trades with RR 2.3 with aprox. 4 trades in a month per instrument, why would you then do following? Try to look for trade every day when there is not your setup. Fear open next trade after few losses? Open huge gamble trade if you know 30% of trades can be loss Try to hold for unrealistic target if you know most of your trades hit 2.5 RR Try to pass prop challenge in one trade ? ... and many more psychological and undisciplined mistakes which discretional pattern traders without EDGE and statistical data about their strategy are doing. 🧠 Having mechanical system with backtested data is your EDGE. 💪 That is what makes you DISCIPLINED TRADER. 🧩 Basic Concept Im looking for the fake break out of the range. Whether we call it manipulation or Stop hunt. It really doesn't matter. The idea is that once big candle is created it creates fomo and break out traders are entering continuation. I trade against them. 📍Bullish continuation setups Model 1 - Entry after manipulation - 50% target Model 2 - Entry on pullback on level between 61.8 - 80% pullback 📍Bearish Continuation setups Model 1 - Entry after manipulation - 50% target Model 2 - Entry on pullback on level between 61.8 - 80% pullback 🧩 Manipulation phase is key for this concept. Without it happening, institutional move cant happen. Why ? Market makers are not looking to stop hunt our stop losses. They dont care about your or mine stop losses even if we trade 100 lots. Most of the brokers are B-Book anyway. But they are seeking the liquidity and they are placed above the highs and lows. You dont even need to read order book or book map to know it. To understand liqudity better read this post below Now you understand after the liquidity was swept. Big players have guns loaded and the move can start. This is what we want to participate. But !! What I have just shown you are patterns. Without adding them in to the right context with the market they will not have highest winning ratio. You must be selective. Basically you want to: 📍Down Trend - Trade Stop hunts above the highs 📍Up Trend - Trade Stop Hunt below the lows In other words we want be buying lows and selling highs. 🧪 How to do it I explained in this post below 📍 Top- Down analysis Before we go to the refined entries we must understand top down analysis and what to look for on the charts. Never start with LTF. You always must go with top Down analysis. 🧩 TOP Down analysis HTF Timeframe for the trend ITF - Timeframe - Ranges and Key Levels LTF - Timeframe Profiling and entries Once we analyze the trend define our range on our timeframe we are looking for manipulation before we go to entries remember this: 🧪Range is mostly created close the key level. If any candle close above the range - Its makes it invalid. 🧪We want see and trade wicks above the range, there you are looking for LTF entry. 📍 Bearish Scenario - (ITF view ) Price should not have candle close above the range on the same timeframe otherwise setup is invalidated and new range created. 📍 Bearish Scenario - (LTF view) - price (yellow has structured movements and should be crating AMD profiles on the edge of the range. We need to drop to LTF to read the structure. 📍 Bullish Scenario ITF view - Price should not have candle close below the range on the same timeframe otherwise setup is invalidated and new range created. 📍 Bullish Scenario - (LTF view) - price (yellow) has structured movements and should be crating AMD profiles on the edge of the range. We need to drop to LTF to read the structure. ‼️Note that Im always referring to the key level. It's called key level , because it's key for the success of the setup. Without it it will work only sometimes. This element must be part of the setup. I personally like the Order Block in other word Supply / Demand zone. 🧪 I have explained Order block in the post below Before we go to trade setup let's clarify timeframes again. Price is fractal you can basically trade this on any timeframes, but you still need to keep structure of 3 Timeframes. 🧩 Timeframe Alignments 🧪Short Term Trading Trend - Monthly - Directional draw on liquidity RangeS - Weekly - Stop hunts AMD Profiles / Entries - H4/H1 🧪Swing Trading Trend - Weekly - Directional draw on liquidity Range - Daily - Stop hunts AMD Profiles / Entries - H1/M15 🧪Day trading Trend - Daily - Directional draw on liquidity Range - H4 - Stop Hunts AMD Profiles / Entries - M15/ M5 🧪Scalping Trend - H4 - Directional draw on liquidity Range - H1 - Stop hunts AMD Profiles / Entries - M5/M1 🔥I recommend to trade daily and weekly ranges. Im not saying Day trading and Scalping is impossible. But Im sure none of us started trading for being isolated nerd behind the PC whole day stressing yourself about every minute. You want live social live and enjoy the freedom which trading can give you and mainly Daily and weekly ranges are higher probability. 🧩 AMD- Accumulation Manipulation Distribution This is happening on the markets over and over. Everyone who trades profitably use it and if not they are not continuous about using it but they use it is what is necessary to move the market. And we want see It on the Edge of the range with confluence of the key level.
Education
by David_Perk
70
Dealing Ranges - Powerful filter tool to your tradingHello Traders today. I ll break down for you how to enter on a pullback with high accuracy and not being stopped out by using a fibonacci in other words a Dealing range. A Dealing Range forms when price takes out both a swing high and a swing low, followed by a clear expansion move. That expansion swing becomes the dealing range. • By dividing the dealing range in half, we get two zones: • Discount region (lower half) – where buying opportunities are typically more favorable. • Premium region (upper half) – where selling opportunities are typically more favorable. • You can think of a dealing range as similar to a PD Array Matrix, but specifically applied to expansion swings rather than consolidation phases. On the example bellow I drew a Dealing range. If I took the long from the key level in the premium the trade would fail. But if waited for the key level in discount I could get much better RR and explosive move vice versa is happening on the bearish order flow charts. Check on your charts So why is this situation on the above happening quite often? It's simple - Liquidity. Market makers needs liquidity to fill their orders so they print nice trade opportunities in the premium where trader enter this setup, for trend continuation. Setup is technically right. But by placing the trades in premium they creates a stop loss cluster = liquidity in the discount. Then this happen - price go for the liquidity of early buyers in the premium hits key level in the discount and it continue with the trend. Im not saying that key levels in the premium cant work, in the strong trend there is no always pullback to the discount. But by applying Dealing ranges you will get: Less but more accurate trades Higher Risk reward setups You can build HTF narrative Use it for targets Better risk management Remember, there is not always a key level in the premium and pullback to the discount is not enough. Trade must go from a key level. So if there is not a key level in the premium price is often retracing to the discount key level in order to create a liquidity around a key level price makes a false break which sucks traders in to the market and create a liquidity on a key level. Dont enter if price is not going from key level its a trap. Time frame alignments Always use 2 timeframes Higher time frame (HTF) and Lower timeframe (LTF) • Higher Timeframe (HTF) = Dealing ranges • Lower Timeframe (LTF) = Market Profiles / Profiling Timeframe sequence HTF Monthly - LTF - Daily / H4 HTF Weekly - LTF - H4 / H1 HTF Daily - LTF H1/ M15 HTF H4 - LTF M15 / M5 Im giving 2x LTF options because sometimes you need to scale lower timeframe to understand price action and best entries. However for the confirmations you can do well with the main sequence of first two. Apply this rule to any markets. Im adding links to few examples from stocks, crypto an FX where you can see application of this concept. Click to charts to open them and see how price behave in discount and premium. Examples from successful Tradingview Ideas Tesla pullback to the discount - Low created in discount ATH most likely coming Bitcoin pullback to the discount - Followed by expansion to ATH Palantir pullback to the discount - followed by expansion to ATH Bitcoin pullback to the Discount - followed by expansion GBPCHF - Targeting Liquidity in the discount Hope this help you in your trading journey. Let me know in the comments David Perk aka Dave FX Hunter
Education
by David_Perk
37
How to Use Fibonacci Levels in Gold Trading. Best Ratios For XAU I will teach you a simple but efficient way of using Fibonacci levels for Gold analysis. You will learn the strongest Fib.retracement levels and a proven strategy for XAUUSD trading. First, let me show you the most powerful Fibonacci retracement levels that you should use for trading Gold. The most significant ones are: 382, 50, 618, 786. To use these Fib.Retracement levels properly, you will need to find the strongest 3 impulse legs. Please, note that you can execute Fibonacci analysis of Gold on any time frame, for the sake of the example, we will do that on a daily. Here are 3 impulses that I found. I was simply trying to identify the price waves with the strongest impact. I underlined them from their lows to their highs. We will draw Fibonacci Retracement levels based on these 3 movements. We plot Fib.Retracement of a bullish impulse from its low to its high. We plot Fib.Retracement of a bearish impulse from its high to its low. That is how it looks. After that we will need to find a confluence - zones or levels where Fib.Retracement levels of different impulses match . Such zones will be significant liquidity clusters where market participants will place huge volumes of trading orders. The first 2 confluence zones that I spotted on a Gold chart will be specific. They are based on 1 and 0 Fib.Retracement levels that match. These 2 areas are both completion and starting points of our impulse legs. The fact that significant price movements completed and started after tests of these zones indicates their significance . Confluence zones 3/4/5/6 are based on a convergence of at least 2 Fib.Retracement levels of different impulses. Probabilities will be high that these zones will attract the market liquidity. After we found all confluence zones, I recommend removing Fibonacci levels from the chart to keep it clean . That is how our complete Fib.Analysis will look. From these zones, we will look for trading opportunities. The areas that are above current price levels will be significant supply areas , and we will look for sell signals from them. The zones that are below Gold spot price will be demand areas. Chances will be high that a strong buying reaction will follow after their test. Confluence zones that we spotted on Gold chart provide unique perspective. Integrating them in your XAUUSD analysis, you will increase the accuracy of your predictions and trading decisions. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Concept of GON...Overview Concept of GON - Get Out Now!!! Thanks to spending most of my time on the wrong side of the markets, the GON (Get Out Now!!!) found me. GON aids in telling me when the markets are about to gain momentum and start to move strongly against a wrong position, the realisation check to save oneself... Understanding the trading journey; SPOT trading turned into glorified DCA (dollar cost average) trading, resulting in greed wanting to make more and then fighting this cumbersome world of liquidations, sizing, leveraging continually beaten by the markets. Clarity on Abbreviations (how would one word it) F8 = Fibonacci tool in short, makes it easier to withstand typos. print ('F'+len('ibonacci')) Last leg - The last leg is calculated from the start/beginning of the trend till the last highest high (HH) or lowest low (LL) position - dependant on direction of the trend. This last stretch/movement whereby the F8 tool is pulled/drawn from the top and bottom, in this article be referred to as the last leg. External leg - This is the bigger move before the last leg. Golden Pocket - between 0.618 (or 61.8%) and 0.65 (or 65%) of the last leg Inverse Pocket - taking the opposite position of the golden pocket, calculating 100 - 61.8 (38.2) and 100 - 65 (35) Momentum - it would be the force used to keep the price moving in one direction with little or no retracements. Retracement value - The % mapped to the K8 tool position, this position would be compared against either the last leg or external leg. Mixing F8 and Momentum The F8 is useful in many ways, for me it would be to identify points of interest (POI), also putting a name to the reaction %. During the course of learning the markets, what made sense to me about this Great F8 tool and how I could make use of it. When drawing it, there is a starting point/value of 0 and ending point/value of 1. Depending which direction, the 0 and 1 could be swapped around and in this chart the 1 position would be at bottom and 0 at top. Knowing the potential retracement % level would be useful to calculate DCA probabilities. This is by bringing factors such as the direction, size and likelihood into equation. The last leg helps to paint the picture of what the market is doing now. The most recent market conditions formed by the latest active key players. By observing their game and looking at it from this perspective helped me to determine the trends. By observing the retraced % value against the last leg, a few hypothesis could be made. 1. If the F8 reaction % value increases/decreases, the force behind price is strengthening and the chart gaining momentum in a given direction, (aka: lower highs | higher lows). 2. Strength of market, as price is held to the upper bracket forcing the price higher, would indicate strong buyers. If the price is held at the lower bracket forcing price lower. 3. The opportunity to DCA decreases and later in the chart nearly impossible - depending on account balance. 4. The retraced position forms the MSS (market structure shift), or BOS (break of structure). BOS confirms strength in the current trend, while MSS warns of a possible reversal and new trend forming. More-on F8 Reaction %, vs normal Trend Statistic Analysis, vs key entries 0% = Double tops or bottoms. Meaning, price bounced at an exact location at 0%. For beginners the Key Entry to enter the trade. 30% < or < 70% < Premium/Discount zones, momentum starts to build confirming the movement and also safe to enter the markets with SL just below the 0%. 40%/60% = Golden Pocket depending on sell/buy, or how you draw'em. You comfortable with the risk, know that these give greater results. 50% = You now need to know what you are doing... The nice thing about momentum would be that the more people notice the new trend forming, the more likely they would jump in trying to try and catch the current move of the market and this would ultimately push the price further in any given direction. Now unto the chart. So, to define the early beginnings of momentum, we start observing the change in trend. The trend always starts with the lowest low (LL), or HH (highest high) depending which side the new leg is forming (opposite of the external leg). From this point we observe the next price reaction during the retrace and bounce against the last leg. We expect an increased new value, thus comparing the F8 position of the lowest low (LL) and higher low (HL) for LONG/BUY, or HH (highest high) to LH (lower high) for SHORT/SELL. Whenever a higher low (HL) or lower high (LH) is formed, we draw a new leg but interestingly the retrace % value increases as the markets keep pushing higher with force and momentum is gained. In this chart the F8 .1 is drawn at the bottom, and .0 is positioned at the location of the last leg up, highlighting the retrace % value during a retracement. So you want to get the maximum profit from any given trade, but that would mean that your profit margin would continue to increase. Logically, who would take 10% if they could make initially 25%? There would be a buffer, like a trailing SL but calculated differently as price increases. If the markets do hold and continue, who would rejoin and re-entering the markets again pushing the price even further. In the world of DCA, you should have high volatility, but with leverage and sizing it becomes tricky and you perhaps "have one shot" . The outcome of this COIN reached just over 70% before retracing, and when it did retrace returned to +-2% of the original position around 25 days. This technique may be tedious to continually draw the K8 on the last leg, especially as new higher highs or lower lows are formed, whereby one need to look at the new retrace % value and calculate if it would exceed that of the previous retrace value. Think this is where MSS and BOS would help, as it would be the same position. If you are following the trend, you have a position working for you, then following with a SL (stop-loss) at the last formed MSS or BOS would be safe for greater profits. If the trend isn't your friend, notice the trends shifting with momentum and be GON!!! This isn't f inancial or trading advice, rather an interesting phenomenal aspect which helped me understand the usefulness of the F8 tool during any trade. Also do not promote any DCA strategies. Hope that you had fun reading this article. Wasn't myself in this particular trade, just taking a previous lesson learned from this COIN and seeing the relevance all around in the markets. Welcome for correction, proper acronyms/abbreviations and any comments.
Education
by secnam
4
Fib levels can be easy to draw but when do they matter most?So I have used Fibonacci extensions and retracement along with time based extensions to show how one can determine not only where and what levels are significant but Also, when they should be paying closer attention, that is the point of these lines along the vertical axis because one cannot simply watch the chart all the time I like to use FaceTime based Fibonacci extensions when I have observed a large move and participated in it and I’m trying to figure out a good way to move forward afterwards. I will often settle Alerts to know when price is touched the 2.8 or the 38 line so that I can check on the chart and see where things are at. It’s helped tremendously with timing, especially if you pay attention to volatility with this.
COINBASE:ETHUSDEducation
by dcpersonal_1101
Identifying High-Probability Support: The Power of ConvergenceHello Friends, Welcome to RK_Chaarts Today we're going to learn Comprehensive Guide to Identifying Convergent Support Zones Which are High Probability Support areas. This post is for Educational purpose only. This detailed analysis will walk you through a step-by-step process of combining multiple technical analysis methods to identify a robust support zone. We'll explore how Elliott Wave theory, Anchored VWAP, EMA200, Fibonacci Retracements, and equality to extensions can coincidentally converge on the same support zone. Step 1: Elliott Wave Analysis Begin by identifying the Elliott Wave structure. Look for impulse waves, corrective waves, and the relationships between them. In this example: - Wave Y is potentially completing near the equality zone (100% to 161.8% extension). - This level marks a potential reversal point. Support zone as per Elliott Wave theory Analysis Step 2: Anchored VWAP Analysis Apply Anchored VWAP to identify key support levels: - Plot the VWAP from the last swing low and the second-last swing low. - Note the convergence of these VWAP levels, which can indicate strong support. Support zone as per Anchored VWAP Analysis Step 3: EMA200 Analysis Add the 200-period Exponential Moving Average (EMA) to your chart: - The EMA200 has consistently provided support during previous corrections. - Note the price approaching this level, increasing the likelihood of a bounce. Support zone as per 200 Exponantial Moving Average Step 4: Fibonacci Retracement Analysis Apply Fibonacci retracements to the previous rally: - Identify the 50%, 61.8%, and 78.6% retracement levels. - Note the current fall has already exceeded the 38% retracement. Support zone as per Fibonacci Retracement Analysis Step 5: Convergence of Support Zones Combine the analysis from each step: - Note the striking convergence of support zones: - Elliott Wave equality zone (100% to 161.8% extension) - Anchored VWAP support zone - EMA200 support level - Fibonacci retracement zone (50%-61.8%) Coincidentally all these are providing nearly same Support area (Price zone) Trading Implications With the convergence of these multiple analysis methods, you can: - Identify a high-probability support zone. - Look for buying opportunities near this zone. - Monitor price action and market sentiment for confirmation of a reversal. - Consider scaling into positions or setting limit orders within the support zone. Important Note: Failure to Hold Support If the price fails to hold support at this converged zone, it may indicate a stronger bearish trend. In this scenario: - Be prepared for a potential significant downfall. - Consider adjusting your trading plan to account for the increased bearish momentum. - Keep a close eye on price action and market sentiment for further guidance. By understanding the convergence of these multiple analysis methods and being aware of the potential risks, you'll be better equipped to make informed trading decisions and navigate the markets with confidence. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
BITSTAMP:ETHUSDEducation
by RK_Chaarts
2
The Golden Pocket: Fibonacci’s Sweet Spot in TradingHello, traders! 😎 If the crypto market had a VIP lounge, the golden pocket would have a permanent reservation. It’s that elusive, almost mystical zone in the Fibonacci retracement where price often decides its fate. Will it make a heroic comeback… or lose steam entirely? Before we dive in, one thing needs to be crystal clear: the golden pocket in trading is not a magic wand. On its own, it’s just a mathematical range. Used without confirmation from other indicators, volume analysis, or broader market context, it can lead you straight into a trap. Professional traders and algorithms treat it as one tool in a much BIGGER TOOLBOX . What Is the Golden Pocket in Trading? In technical terms, the golden pocket refers to a specific slice of the Fibonacci retracement scale, typically between 61.8% and 65%. These numbers aren’t random. The 61.8% figure comes from the Fibonacci sequence, a ratio found in nature’s architecture — spirals of seashells, galaxies, flower petals — and eerily echoed in financial markets. The small range between 61.8% and 65% is what traders call the Fibonacci golden pocket or golden pocket fib levels. Here’s the logic: when an asset trends up but starts to pull back, it often retraces a portion of that move before continuing. The fib retracement golden pocket tends to be the last meaningful zone where buyers step in before momentum breaks completely. In a downtrend, it works the same way but inverted — the price rallying into the golden pocket often finds sellers ready to push it back down. Why does it matter? Market behavior is, in part, a reflection of human psychology. Many traders — from retail to institutions — watch these levels, which makes reactions here more probable. Add in algorithms coded to act at certain Fibonacci ratios, and you have a cluster of activity that can turn the golden pocket into a genuine battleground. But, and here’s that warning again, a retracement into the golden pocket alone doesn’t guarantee a reversal. Without confluence from other tools (trendlines, moving averages, volume spikes, momentum oscillators), it’s simply a potential reaction zone. Why the Golden Pocket Works (Sometimes) The golden pocket trading concept thrives on repetition. Over years of chart history across markets — stocks, forex, crypto — this small Fibonacci zone has been tested again and again. It often coincides with areas of previous support/resistance or with liquidity zones where large orders are waiting. Think of it like this: if price is a runner and the market is a racetrack, the golden pocket is the point where the runner slows down to decide whether to push for another lap or leave the track. Sometimes they sprint ahead, sometimes they collapse, but the decision often happens there. In crypto, this zone is particularly watched because of the market’s volatility. Bitcoin, Ethereum, and other majors have shown countless reactions here, which keeps the cycle going. Traders believe in it because it’s worked before, and because traders believe in it, it works again… until it doesn’t. That’s the critical point. IT DOESN’T ALWAYS WORK . Treating it as gospel is one of the fastest ways to get stopped out. Smart traders always ask: What else confirms this zone? A Real Bitcoin Example Let’s jump back to September 2021. Bitcoin had rallied from its July swing low around $29,000 to the early September high near $52,900. Then, a correction began. If you plotted a Fibonacci retracement from that July low to the September high, the pullback landed almost perfectly in the golden pocket range between $42,800 and $41,900. On the chart, this wasn’t just a random number zone — it aligned with a previous area of consolidation and a visible liquidity shelf. The market reaction? Price respected the zone, paused for a few sessions, then bounced to retest the $52K area. However, here’s the twist — it didn’t break new highs. By November, the rally failed, and BTC entered a deeper correction. That single example tells you everything you need to know: the golden pocket can be a reaction point, but not a guaranteed trend reversal. Those who combined it with volume divergence, macro sentiment, and moving averages saw the warning signs early. Those who didn’t… learned a painful lesson. The Takeaway The golden pocket fibonacci is one of those charting concepts that sticks in traders’ minds because it’s both elegant and, at times, eerily accurate. It’s a reflection of how price action can mirror natural ratios found in the world around us. But markets are not bound by mathematics alone — they’re driven by liquidity, sentiment, and macroeconomic forces. The golden pocket in trading works best when it’s part of a confluence: combine it with other technical indicators, volume profile analysis, or key horizontal levels. On its own? It’s just a pretty number. In the right hands, with the right supporting evidence, it’s a zone where history has shown the market likes to make decisions.
Education
by WhiteBIT
6
Fibonacci Arcs in Stock TradingFibonacci Arcs in Stock Trading Fibonacci arcs, derived from the renowned Fibonacci sequence, offer a compelling blend of technical analysis and market psychology for traders. By mapping potential support and resistance areas through arcs drawn on stock charts, these tools provide insights into future price movements. This article delves into the practical applications of Fibonacci arcs in trading, their interplay with market psychology, and best practices for effective use. Understanding Fibonacci Arcs The Fibonacci arc indicator is a unique tool in technical analysis derived from the famed Fibonacci sequence. It’s crafted by drawing arcs at the key Fibonacci retracement levels - 38.2%, 50%, and 61.8% - from a high to a low point on a stock chart. Each curve represents potential support or resistance areas, offering insights into the stock’s future movements. The art of arc reading, meaning interpreting these curves, is crucial for traders. When a stock approaches or intersects with an arc, it reflects a significant reaction level. For instance, if a stock price touches or nears an arc, it could face arc resistance, indicating a potential halt or reversal in its trend. Applying Fibonacci Arcs in Trading In the stock market, these arcs serve as a guide for traders seeking to anticipate future price movements. When applied correctly, they can provide critical insights into potential support and resistance levels. Here's a step-by-step look at how you may use them effectively: - Identifying High and Low Points: Begin by selecting a significant high and low point on the stock's chart. In an uptrend, it’s the most recent swing high to a previous swing low, and vice versa. These are the anchor points. - Drawing the Arcs: Once the points are selected, draw the arcs at the Fibonacci retracement levels of 38.2%, 50%, and 61.8%. They radiate from the chosen low point to the high point (or vice versa), cutting across the chart. - Interpretation: Watch how the stock interacts with these lines. When the price approaches an arc, it might encounter resistance or support, signalling a potential change in trend or continuation. - Timing Entries and Exits: Traders can use the arcs in the stock market as a tool to time their trading decisions. For instance, a bounce could be a signal to enter a trade, whereas the price breaking through might suggest it's time to exit. Fibonacci Arcs and Market Psychology The effectiveness of Fibonacci arcs in trading is deeply intertwined with market psychology. They tap into the collective mindset of traders, who often react predictably to certain price levels. The Fibonacci sequence, underlying this tool, is not just a mathematical concept but also a representation of natural patterns and human behaviour. When a stock nears a curve, traders anticipate a reaction, often leading to a self-fulfilling prophecy. If many traders make an arc stock forecast, they might sell as the price approaches a certain point, causing the anticipated resistance to materialise. Similarly, seeing support at an arc can trigger buying, reinforcing the tool’s power. This psychological aspect makes Fibonacci arcs more than just technical tools. They are reflections of the collective expectations and actions of market participants, turning abstract mathematical concepts into practical indicators of market sentiment and potential movements. Best Practices Incorporating Fibonacci arcs into trading strategies involves nuanced techniques for better accuracy and efficacy. Here are some best practices typically followed: - Complementary Tools: Traders often pair this tool with other indicators like moving averages or RSI for a more robust analysis. - Accurate Highs and Lows: It's best to carefully select the significant high and low points, as the effectiveness of the curves largely depends on these choices. - Context Consideration: Understanding the broader market context is crucial. Traders usually use Fibonacci arcs in conjunction with fundamental factors to validate their analysis. - Watch for Confluence: Identifying areas where Fibonacci levels converge with other technical signals can provide stronger trade setups. - Practice Patience: Traders typically avoid making hasty decisions based solely on Fibonacci levels. It's usually better to wait to see additional confirmation from the price action. Advantages and Limitations of Fibonacci Arcs Fibonacci arcs are a popular tool in technical analysis, offering distinct advantages and some limitations in analysing stock movements. Understanding these can help traders leverage the tool more effectively. Advantages - Intuitive Nature: The Fibonacci sequence is a natural pattern, making the tool intuitive for traders to understand and apply. - Dynamic Support and Resistance Levels: They provide dynamic levels of support and resistance, unlike static lines, adapting to changing market conditions. - Versatility: Effective in various market conditions, the arcs can be used in both trending and sideways markets. Limitations - Subjectivity in Selection: The effectiveness largely depends on correctly identifying the significant high and low points, which can be subjective. - Potential False Signals: Like all technical tools, they can generate false signals, especially in highly volatile markets. - Requires Complementary Analysis: To maximise effectiveness, these curves are usually used alongside other technical indicators, as they are not infallible on their own. The Bottom Line Fibonacci arcs are invaluable tools in stock analysis, providing insights into market trends and potential price movements. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:TSLAEducation
by FXOpen
1
Fibonacci Retracement: The Hidden Key to Better EntriesIf you’ve ever wondered how professional traders predict where price might pull back before continuing... the secret lies in Fibonacci Retracement. In this post, you’ll learn: What Fibonacci retracement is Why it works How to use it on your charts (step-by-step) Pro tips to increase accuracy in the market 🧠 What Is Fibonacci Retracement?: Fibonacci Retracement is a technical analysis tool that helps traders identify potential support or resistance zones where price is likely to pause or reverse during a pullback. It’s based on a mathematical sequence called the Fibonacci Sequence, found everywhere in nature — from galaxies to sunflowers — and yes, even in the markets. The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding ones, starting with 0 and 1. The sequence typically begins with 0, 1, 1, 2, 3, 5, 8, 13, and so on. This pattern can be expressed as a formula: F(n) = F(n-1) + F(n-2), where F(n) is the nth Fibonacci number. The key Fibonacci levels traders use are: 23.6% 38.2% 50% 61.8% 78.6% These levels represent percentages of a previous price move, and they give us reference points for where price might pull back before resuming its trend and where we can anticipate price to move before showing support or resistance to the trend you are following. 💡Breakdown of Each Fib Level: 💎 0.236 (23.6%) – Shallow Pullback What it indicates: Weak retracement, often signals strong trend momentum. Buyers/sellers are aggressively holding the trend. Best action: Aggressive entry zone for continuation traders. Look for momentum signals (break of minor structure, bullish/bearish candles). Stay out of the market until you see more confirmation. 💎 0.382 (38.2%) – First Strong Area of Interest What it indicates: Healthy pullback in a trending market. Seen as a key area for trend followers to step in. Best action: Look for entry confirmation: bullish/bearish engulfing, pin bars, Elliott Waves, or break/retest setups. Ideal for setting up trend continuation trades. Stop Loss 0.618 Level 💎 0.500 (50.0%) – Neutral Ground What it indicates: Often marks the midpoint of a significant price move. Market is undecided, can go either way. Best action: Wait for additional confirmation before entering. Combine with support/resistance or a confluence zone. Useful for re-entry on strong trends with good risk/reward. Stop Loss 1.1 Fib Levels 💎 0.618 (61.8%) – The “Golden Ratio” What it indicates: Deep pullback, often seen as the last line of defense before trend reversal. High-probability area for big players to enter or add to positions. Best action: Look for strong reversal patterns (double bottoms/tops, engulfing candles). Excellent area for entering swing trades with tight risk and high reward. Use confluence (structure zones, moving averages, psychological levels, Elliott Waves). Wait for close above or below depending on the momentum of the market. Stop Loss 1.1 Fib Level 💎 0.786 (78.6%) – Deep Correction Zone What it indicates: Very deep retracement. Often a final “trap” zone before price reverses. Risk of trend failure is higher. Best action: Only trade if there's strong reversal evidence. Use smaller position size or avoid unless other confluences are aligned. Can act as an entry for counter-trend trades in weaker markets. Stop Loss around 1.1 and 1.2 Fib Levels ⏱️Best Timeframe to Use Fibs for Day Traders and Swing Traders: Day trading: Day traders, focused on capturing short-term price movements and making quick decisions within a single day, typically utilize shorter timeframes for Fibonacci retracement analysis, such as 15-minute through hourly charts. They may also use tighter Fibonacci levels (like 23.6%, 38.2%, and 50%) to identify more frequent signals and exploit short-term fluctuations. Combining Fibonacci levels with other indicators such as moving averages, RSI, or MACD, and focusing on shorter timeframes (e.g., 5-minute or 15-minute charts) can enhance signal confirmation for day traders. However, relying on very short timeframes for Fibonacci can lead to less reliable retracement levels due to increased volatility and potential for false signals. Swing trading: Swing traders aim to capture intermediate trends, which necessitates giving trades more room to fluctuate over several days or weeks. They typically prefer utilizing broader Fibonacci levels (like 38.2%, 50%, and 61.8%) to identify significant retracement points for entering and exiting trades. Swing traders often focus on 4-hour and daily charts for their analysis, and may even consult weekly charts for a broader market perspective. 🎯 Why Does Fibonacci Work?: Fibonacci levels work because of: Mass psychology – many traders use them Natural rhythm – markets move in waves, not straight lines Institutional footprint – smart money often scales in around key retracement zones It's not magic — it's structure, and it's surprisingly reliable when used correctly. 🛠 How to Draw Fibonacci Retracement (Step-by-Step): Let’s say you want to trade XAU/USD (Gold), and price just had a strong bullish run. ✏️ Follow These Steps: Identify the swing low (start of move) Identify the swing high (end of move) Use your Fibonacci tool to draw from low to high (for a bullish move) The tool will automatically mark levels like 38.2%, 50%, 61.8%, etc. These levels act as pullback zones, and your job is to look for entry confirmation around them. 🔁 For bearish moves, draw from high to low. (I will show a bearish example later) Now let’s throw some examples and pictures into play to get a better understanding. 📈 XAU/USD BULLISH Example: 1.First we Identify the direction of the market: 2.Now we set our fibs by looking for confirmations to get possible entry point: Lets zoom in a bit: Now that we have a break of the trendline we wait for confirmation and look for confluence: Now we set our fibs from the last low to the last high: This will act as our entry point for the trade. 3. Now we can look for our stop loss and take profit levels: Stop Loss: For the stop loss I like to use the fib levels 1.1 and 1.2 when I make an entry based upon the 0.618 level. These levels to me typically indicate that the trade idea is invalid once crossed because it will usually violate the prior confirmations Take Profit: For the take profit I like to use the Fib levels 0.236, 0, -0.27, and -0.618. This is based upon your personal risk tolerance and overall analysis. You can use 0.236 and 0 level as areas to take partial profits. Re-Entry Point Using Elliott Waves as Confluence Example: This is an example of how I used Elliott Waves to enter the trade again from the prior entry point. If you don’t know what Elliott Waves are I will link my other educational post so you can read up on it and have a better understanding my explanation to follow. After seeing all of our prior confirmations I am now confident that our trend is still strongly bullish so I will mark my Waves and look for an entry point. As we can see price dipped into the 0.38-0.5 Fib level and rejected it nicely which is also in confluence with the Elliott Wave Theory for the creation of wave 5 which is the last impulse leg before correction. 🔻 In a downtrend: Same steps, but reverse the direction — draw from high to low and look to short the pullback. XAU/USD Example: As you can see the same basic principles applied for bearish movement as well. ⚠️ Pro Tips for Accuracy: ✅ Always use Fib in confluence with: Market structure (higher highs/lows or lower highs/lows) Key support/resistance zones Volume or momentum indicators Candle Patterns Elliott Waves, etc. ❌ Don’t trade Fib levels blindly — they are zones, not guarantees. 📊 Use higher timeframes for cleaner levels (4H, Daily) 💡 Final Thought Fibonacci retracement doesn’t predict the future — it reveals probability zones where price is likely to react. When combined with structure and confirmation, it becomes one of the most reliable tools for new and experienced traders alike. 🔥 Drop a comment if this helped — or if you want a Part 2 where I break down Fibonacci Extensions and how to use them for take-profit targets. 💬 Tag or share with a beginner who needs to see this!
FOREXCOM:XAUUSDEducation
by WrightWayInvestments
How "Whales" Manipulate Markets: A Trader's Guide to SucceedEvery chart tells a story of institutional footprints. For most, it's chaotic noise. But when you understand the market's true engine — the constant need of "Smart Money" to capture vast amounts of liquidity to fill their orders — that noise turns into a clear map. This guide will teach you to read that map. We will break down the main types of manipulation and show you how to use them to identify high-probability zones for potential entries. So, why exactly is liquidity the fuel for these "Smart Money" players, which for simplicity, we'll call "Whales"? It's because a Whale holds the largest volume of funds in a specific asset and, unlike retail traders like us, it cannot open its huge position at any given moment simply because there aren't enough buy or sell offers on the market. To fill its orders, the Whale constantly carries out manipulations to capture additional liquidity. This isn't about deception or anything negative—it's how the market constantly forms its movements, how whales achieve their goals by moving from one liquidity pool to another, much like whales in the ocean hunt for plankton to get vital energy for long journeys from one feeding ground to another. Why will these principles of price movement through manipulation, which worked decades ago, continue to work forever? Because human nature doesn't change over time. The crowd is always driven by greed and fear, making it easy to manipulate. Therefore, manipulation is often the motive for the birth of a future move and is a key element in market mechanics. If you understand these mechanics, you will be able to see the footprints of whales on any chart and not only minimize your chances of becoming their food but also join their next move to get your share of the profit in the boundless ocean of market opportunities. Let's take a closer look at how whales carry out their manipulations and classify their types. The Whale is constantly in hedged positions. To fill its large-sum orders without impacting the price, it uses the principles of Sell to Buy (STB) and Buy to Sell (BTS) . The STB manipulation is used to accumulate long positions. To do this, the Whale opens an opposing short position, activating stop orders and liquidations of buyers, purchasing their positions at a favorable price. It also encourages other retail participants, especially breakout traders, to open short positions. Continuing to accumulate long positions, the Whale sharply moves the price up, liquidating short participants and absorbing their positions. After the price has moved up, the Whale is left with an open losing position from its short manipulation. To close it at breakeven or a small loss, the Whale needs to return the price back to the zone of its manipulation. This return is called mitigation . In the opposite case, when the Whale needs to drive an asset's price down, it uses the BTS manipulation . To fill its short positions, the Whale opens a long position, activating stop-losses and forced liquidations of sellers, and encouraging retail breakout traders to also open long positions. Continuing to accumulate short positions, the Whale aggressively moves the price down, absorbing and liquidating the positions of impatient longs. After the downward impulse is complete, the Whale is left with an open losing long position. Just as in the first case, to close it at zero or a small loss, the Whale needs to return the price to the manipulation zone, after which another markdown of the asset occurs, and the cycle can be repeated as many times as necessary. Thus, through manipulation, the Whale achieves two goals at once: It gets the most favorable price. It eliminates most of its competitors by liquidating their positions with an opposing move. Most of the time, the price movement between manipulations is unpredictable. Entering during this movement, for example, in the middle or end of an impulse or within a range, increases the chances that you will become a victim of the next manipulation and liquidity for the Whale. However, if you wait for the price to arrive at the manipulation zone, also known as a Point of Interest (POI) , and ensure that the Whale acknowledges this area (i.e., it has stopped there and is beginning a reversal), the probability of choosing the correct direction for a trade will be on your side. To help you recognize manipulation zones, let's look at their different types. 🔹 Order Block (OB) - A down candle (sometimes 2, rarely 3 candles) before an impulsive move up (in the case of a bullish OB), or an up candle (sometimes 2, rarely 3 candles) before an impulsive move down (in the case of a bearish OB). In most cases, this short, sharp move should sweep some form of significant liquidity. An additional confirmation of an Order Block is the immediate imbalance or Fair Value Gap (FVG) that follows it, because the Whale's intensive position accumulation and the associated impulse move don't allow enough time for all market participants' orders to be filled. 🔹 Demand/Supply Zones are similar in principle to Order Blocks but differ in that they have a more prolonged action, which can consist of many up or down candles, making these zones often significantly wider than OBs. Demand Zone - The last downward move before an intensive rally. Supply Zone - The last upward move before an intensive drop. Often, an Order Block can be found inside a Demand/Supply zone. 🔹 Range - Also a manipulation zone and essentially an Order Block, but unlike an OB, this manipulation can last for a very long time when the Whale lacks sufficient liquidity from a quick manipulation and accumulates its large position by collecting internal and external liquidity through the range. Ranges, just like Order Blocks and Demand/Supply zones, are points of interest for the Whale to close its losing hedged positions and continue moving towards its goals. Conditions for Applying and Validity of Manipulation Zones An important condition for applying manipulation zones is that they can only be used once . That is, if the price has come to a zone and reacted to it, upon a second arrival, that zone is no longer valid. For convenience in marking used zones, I shorten them to the point of the first touch so as not to consider them anymore, but to understand which way the order flow is directed—a very important concept that, unlike structure, shows the true direction of the Whale's movement. Order flow is manifested by the price reacting to manipulation zones from below in an uptrend and from above in a downtrend. It is also very important to understand that it makes sense to identify and use manipulation zones as one of a trade's entry conditions only from below for an uptrend and from above for a downtrend . Any counter-trend zones formed in the path of a trend are highly likely to be broken and serve as liquidity. In ranges, manipulations formed after deviations can be used for entries from both sides. Only manipulations that were formed at the beginning of an impulsive price move can be considered valid for entry. That is, they must be the manipulations that directly triggered the start of the move; in Smart Money terminology, they are often called the "origin" . Any manipulation in the middle or end of a move will most likely serve as liquidity on the way back to mitigate the origin zone. How long does a manipulation zone remain relevant? It remains relevant until a new structural element (a higher high or a lower low) is formed , especially if the price has already come close to the manipulation zone, for example, into the FVG before the zone. This most likely means the Whale has already finished its business there and closed one of its losing hedged positions at a small loss. When the trend changes, such a zone will act as liquidity, not a POI. So, a manipulation zone will not always be mitigated; often, a reversal occurs from the FVG before it. However, entering from an FVG is much less reliable than from an Order Block, Demand/Supply zone, or Range. I personally skip such entries and wait for a new manipulation zone to form and be mitigated; they happen on the market constantly. A good bonus that further strengthens the probability of a setup working out during the mitigation of manipulation zones is a liquidity sweep upon reaching them. Consider the context and supplementary conditions. Although manipulation zones are the strongest areas for price reversals, they should always be used in conjunction with other supplementary conditions and tools, for example, with Fibonacci retracement levels or liquidity sweeps. "Context" implies any other conditions that can either confirm or contradict the likely direction of price movement. For example: in which phase of correction is the price? For a long, safe entries can only be considered from the discount zone (below the 50% Fib level); for shorts, only from the premium zone (above the 50% Fib level). Is there significant, un-swept liquidity nearby, such as previous daily, weekly, or monthly highs/lows, or an untouched Asian session high/low? What upcoming news could affect the asset and hit the stop before the setup plays out? At what time of day did the price mitigate the manipulation? Taking context into account is a crucial and integral part of analysis in the search for entry points. Due to the fractal nature of market charts, manipulations can be seen on any timeframe. On weekly and daily timeframes, manipulation zones can be used for swing trading or investment purchases. 4-hour and 1-hour timeframes will show potential entries from manipulations for intraday trading or holding positions for several days. 5-minute and 1-minute timeframes will show manipulations in the form of order flow for final entry confirmation. Whatever type of analysis you use for your trading, understanding the nature of market manipulations and practicing their recognition will allow you to be one step ahead of most market participants and open your trades with an understanding of which way institutional capital is most likely to move next. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If you found this guide helpful, support it with a Boost! 🚀 Have a question or a "lightbulb moment" from this article? Share it in the comments! I read every single one. 💬 ► Follow me on TradingView for more educational content like this and to not miss my next detailed trade idea . ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
OANDA:XAUUSDEducation
by TheWhaleSM
74
Understanding Elliott Wave Theory with BTC/USDIntroduction to Elliott Wave Theory: Elliott Wave Theory is a popular method of technical analysis that seeks to predict the future price movement of financial markets. Developed by Ralph Nelson Elliott in the 1930s, the theory is based on the idea that market movements follow a repetitive pattern, driven by investor psychology. At the core of Elliott’s theory is the idea that markets move in a 5-wave pattern in the direction of the trend, followed by a 3-wave corrective pattern. These waves can be seen on all timeframes and help traders identify potential entry and exit points in the market. Key Concepts of Elliott Wave Theory: 1. Impulse Waves (The Trend) 2. These are the waves that move in the direction of the overall trend. They are labeled 1, 2, 3, 4, 5 and represent the price movement in the main direction of the market. * Wave 1: The initial move up (or down in a bearish market). I like to mark up the first wave how I do my Fibs, from the point where price showed a major impulse. * Wave 2: A correction of Wave 1 (it doesn’t go lower than the starting point of Wave 1). * Wave 3: The longest and most powerful wave in the trend. * Wave 4: A smaller correction in the direction of the trend. * Wave 5: The final push in the direction of the trend, which can be shorter and weaker than Wave 3. 3. Corrective Waves (The Pullbacks) 4. After the five-wave impulse, the market enters a corrective phase, moving against the trend. This corrective phase is generally a 3-wave pattern, labeled A, B, C: * Wave A: The initial correction, typically smaller than Wave 3. * Wave B: A temporary move against the correction (it often confuses traders who think the trend has resumed). * Wave C: The final move against the trend, usually the strongest and most aggressive. How to Implement Elliott Wave on BTC/USD: Let’s break down how you can apply the Elliott Wave Theory to BTC/USD using a simple example. 1. Identify the Trend 2. Start by identifying the current market trend for BTC/USD. Are we in an uptrend or downtrend? This will determine whether you’re looking for a 5-wave impulse up (bullish) or down (bearish). 3. Locate the Waves 4. Look for the five-wave structure in the trend direction. Once you identify a potential impulse move, label the waves accordingly: * Wave 1: A new uptrend starts. * Wave 2: A small pullback (usually less than the size of Wave 1). * Wave 3: A significant surge in price, often the most volatile. * Wave 4: A smaller pullback or consolidation. * Wave 5: The final push higher, which might show signs of exhaustion. 5. Corrective Phase 6. After completing the 5-wave impulse, expect a corrective 3-wave pattern (A, B, C). These corrections typically last longer than expected and can often confuse traders. * Wave A: Price starts to reverse. * Wave B: A retracement that may confuse traders into thinking the trend is resuming. * Wave C: A strong pullback that brings the price even lower. 7. Use Fibonacci Levels as confluence 8. One of the most powerful tools in Elliott Wave analysis is Fibonacci retracement levels. You can use these to predict potential levels where Wave 2 and Wave 4 could end, or where Wave C might complete the correction. Common retracement levels are 38.2%-50% for Wave 4, and 50-61.8% For Waves 2 and B but keep in mind, these wave can retrace up to 100% before the wave analysis becomes invalid. But ideally these points are where you look to make an entry. Wave 2 Example: This one hit the golden spot (0.5-0.618) perfectly and continued to push upward. Wave B and C Example: This example hit closer to the 0.786 level which is also a key level for retracement. Wave 4 Example: This one hit the golden spot (0.382-0.5) for Wave 4 perfectly before continue the bullish momentum. I try to use the RED levels below (1.1 and 1.2) as my invalidation (Stop Loss) levels and the GREEN levels (-0.27 and -0.618) as my Take Profit levels. Depending on your goals you can also use Fib Levels 0.236 and 0 as partial Take Profit levels. 9. Confirm with Indicators 10. To validate your Elliott Wave counts, use other indicators like the RSI (Relative Strength Index), MACD, or Moving Averages. For example, a Wave 3 might occur when the RSI is above 50, indicating strength in the trend. In this example you can see the RSI cross the 50 threshold and the 3rd Wave form. Continuation after the Wave is complete: Tips for Trading with Elliott Wave Theory: * Stay Flexible: Elliott Wave Theory is not set in stone. If the market doesn’t follow the expected pattern, adjust your wave counts accordingly. * Don’t Rely on One Timeframe: A 5-wave structure on one timeframe may be part of a larger wave pattern on a higher timeframe. Always analyze multiple timeframes. * Wave Personality: Waves don’t always look the same as stated earlier. Wave 2 can retrace up to 100% of Wave 1 and Wave 4 should generally not overlap Wave 1 or this may invalidate the Wave structure. * Risk Management: Always use proper risk management techniques. No theory is perfect, so make sure you have a stop-loss in place to manage your risk. Conclusion: Using Elliott Wave Theory on BTC/USD: The Elliott Wave Theory can be a powerful tool for analyzing and forecasting price movements. By identifying the 5-wave impulse and 3-wave corrective patterns, you can gain insights into potential market direction. Just remember to use it alongside other tools and indicators for confirmation, and don’t forget to manage your risk. As you apply it to BTC/USD or any other asset, remember that the market doesn’t always follow the "ideal" patterns, and flexibility is key. Practice on different timeframes, refine your skills, and use the theory as a part of your overall trading strategy. Final Thoughts: If you're just starting, don't get discouraged if you miss a wave or two. Trading is a journey, and with patience and practice, you'll begin to spot these patterns more naturally. Whether you’re analyzing Bitcoin's price action or any other asset, Elliott Wave Theory can give you a deeper understanding of market psychology. Good Luck and Happy Trading!
COINBASE:BTCUSDEducation
by WrightWayInvestments
43
A Step-by-step Guide to One of the Chart Analysis MethodHello Friends, Welcome to RK_Chaarts, Today we're going to learn step-by-step guide to one of the chart analysis Method by analyzing a chart of " Varun Beverages Ltd. (VBL) " to identify a trend change opportunity.(Educational Post). Let's get started! Applying Elliott Wave Theory First, we can see that the bottom formed in March 2025 is likely a Wave ((4)) in Black as a bottom, marked as such on the chart. From there, Wave 5 should move upwards. Looking at the daily timeframe, we can see that price gone up in five sub-divisions of Wave (1) in Blue of Wave ((5)) in Black have completed, marked as Red 1-2-3-4-5, that means blue intermediate Wave (1) has ended, and Wave (2) has begun, which is unfolded in corrective nature marked as WXY in Red of Wave (2) in Blue. According to the wave principle, Wave (2) should not retrace more than 100% of Wave (1), which started from the 419.65 bottom. Therefore, 419.65 becomes our invalidation level. If the price moves below this level, it would invalidate our Wave (2) principle. Assuming our wave counts are correct, the upward movement is in the five sub-divisions, and the downward movement is in the three sub-divisions. Definitely, the conviction is increasing that we have correctly identified Waves (1) and (2). Shown in chart image below Tweezers at Bottom Now, we can see that Wave 2 has retraced more than 70% and has formed a Tweezer candlestick pattern at the bottom. A bearish candle was followed by a bullish candle, both with a Tweezer-like shape, with the second candle being green. This could indicate a potential reversal. Moreover, the latest candle has also taken out the high of the previous two candles, showing follow-through. The price has also shown follow-through on the upside after that. So, this can be considered as the first sign that Wave 2 might be ending, marked by a significant Tweezer pattern at the bottom with a follow-through candle. Shown in chart image below Significant Breakout Pending Yet Secondly, from the top where Wave 1 ended, we've been considering the decline from around 560.50 as a resistance. We drew a resistance trend line, and if the price breaks out above it, we can say that the resistance trend line has been broken, indicating a breakout above the last fall's trend line, Which is not Broken yet. Shown in chart image below Dow Theory The Dow Theory states that when the price moves up, it forms a Higher High, Higher Low pattern, and when it moves down, it forms a Lower High, Lower Low pattern. Somehow, the Dow Theory also needs to change, as the last swing was forming a Lower High, Lower Low pattern. The last swing high was at 479, which we marked with a green arrow. If the price crosses above it, we can say that the price is now forming a Higher High pattern. This indicates that the Dow Theory is changing from a falling trend to a rising trend. Shown in chart image below Stop Loss Once the Dow Theory also changes, we can use the last swing low at 446.15 as our stop loss. However, this stop loss will only be valid after the Dow Theory changes; otherwise, the invalidation level will remain at 419. Shown in chart image below Projected Target of Wave (3) So, friends, we've applied the Elliott Wave principle, and there's been a significant retracement, all within the valid range, without violating any rules or triggering invalidation. There's limited room left on the downside, and then we have the Tweezer candlestick pattern, which is a significant sign. We're expecting a reversal from there, and the price has followed up with an upward move. What's left now is the breakout above the resistance trend line and a change in the Dow Theory. Once these two conditions are confirmed, all parameters will match, and we can add a position to our portfolio using the last swing low as our stop loss, instead of the invalidation level. This is how chart analysis is done for investment purposes. We've seen many signs in our favor, and yet we still use a stop loss to prevent significant losses in case the stock or market moves unexpectedly. This is what stop loss is all about - minimizing potential losses. We've also discussed the target projection based on Wave theory, 161.8% level, which we explained through an image. So, friends, I hope you've understood the entire conclusion and learned how to analyze charts using different methods, one of which we shared with you today. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Chaarts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Chaarts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:VBLEducation
by RK_Chaarts
27
How to Draw Support & Resistance In TradingViewLearn how to effectively identify, draw, and utilize support and resistance levels in TradingView with this comprehensive step-by-step tutorial. Whether you're a beginner trader or looking to refine your technical analysis skills, this video covers everything you need to know about one of the most fundamental concepts in trading. What You'll Learn: Understanding support and resistance: the foundation of technical analysis and price action trading Step-by-step instructions for drawing horizontal support and resistance lines in TradingView Creating support and resistance zones for more flexible trading approaches Practical tips for using TradingView's drawing tools effectively This tutorial may be helpful for day traders, swing traders, and investors using TradingView who want to improve their chart analysis skills. The techniques covered could help you make more informed entry and exit decisions by understanding where price might find support or encounter resistance. Visit Optimus Futures to learn more about trading futures with TradingView: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary. This video represents the opinion of Optimus Futures and is intended for educational purposes only. Chart interpretations are presented solely to illustrate objective technical concepts and should not be viewed as predictive of future market behavior. In our opinion, charts are analytical tools—not forecasting instruments. Market conditions are constantly evolving, and all trading decisions should be made independently, with careful consideration of individual risk tolerance and financial objectives.
CME_MINI:ES1!Education
by OptimusFutures
1
Strategy & Education: Trading with Fibonacci and Order Blocks🔍 Trading Strategy Based on Fibonacci Levels and Order Blocks This chart showcases three consecutive sell trades I executed on the BTCUSDT pair, each resulting in a profitable outcome. The purpose of this explanation is to demonstrate how Fibonacci retracement levels can be combined with Order Block zones to identify high-probability trade setups. 🧩 The Foundation: Understanding Price Retracement Behavior The ABC, abc, and (a)(b)(c) structures marked on the chart are not Elliott Waves. Instead, these labels are used to represent simple retracement movements in the market. The focus here is not wave theory, but recognizing how price reacts and pulls back after a move, and how we can benefit from these reactions. 📌 Trade 1: Primary Fibo-OB Confluence I drew a Fibonacci retracement from the A wave to the B wave. The price then retraced to the C area, landing between the 0.618 and 0.786 Fibonacci levels, where an Order Block (OB) was also present. This overlap created a strong technical and structural resistance zone. I entered the first sell trade from this confluence. 📌 Trade 2: Internal Retracement and OB Alignment Inside the first corrective move, a smaller abc pattern formed. I applied Fibonacci again from small a to small b. The c leg reached the same key Fibonacci zone (0.618–0.786) and overlapped with a second OB. This confluence offered a second sell entry. 📌 Trade 3: Micro Structure – Same Logic Reapplied I repeated the exact same logic one more time on a micro (a)(b)(c) structure. Fibonacci from (a) to (b), price touched 0.618–0.786, coinciding again with an OB. This became the third and final sell position. 🧠 The Logic Behind the Strategy: Price doesn’t move in straight lines—it flows in waves. During pullbacks, if Fibonacci levels align with Order Block zones, the market tends to react strongly. My focus here was to identify these areas of confluence in advance and enter trades at high-probability turning points.
Education
by Nurlan_PT
1
Using The Zig-Zag Indicator To Gain Clarity On Your Price ChartIn my experience, learning how to read a price chart, specifically understanding the ebbs and flows of a trend, is the biggest hurdle that newer traders face. At least on the technical side of things. Something that helped me shorten that learning curve at the beginning of my trading career was the "Zig-Zag" indicator. Now, I didn't use it as part of a strategy or anything like that. Rather, it was a tool that helped train my eyes to read extensions and retracements in the markets both at a beginner and advanced level. If you're someone that is struggling, hopefully it can do the same for you. Please remember to support by hitting that like button and if you thought this video was helpful please share so other traders can benefit as well. Akil
Education
by Akil_Stokes
4
Best Practice: Prepare, Assess, Plan Then TradeTraders are often eager to jump straight into the next trading session but this may not always be the best option to chose. It can be more beneficial to follow a regular pre-trading routine to note down important scheduled events, establish current trends, as well as meaningful support and resistance price levels, and importantly this doesn’t have to be time consuming. This is not meant to be that trading ‘holy grail’ but more of an addition to your existing trading process or plan. Having a regular routine to establish important levels, indicator set-ups and price trends to be aware of during your trading day may help you make trading decisions in a more effective way. This pre trading routine can also be helpful for traders that take longer term positions, as it’s still important to consider the longer-term weekly perspectives as well. This routine can be carried out at the weekend and then monitored and, where necessary, modified during the week as price action develops for the particular CFD(s) you are trading. 1. Keep Informed of Important Data Releases If there are several CFD’s you regularly trade and tend to stick with, make sure you have as much information about those assets as possible before you start trading. Consider utilising the Pepperstone trading calendar to help keep you informed of any economic releases/company earnings data that might impact the CFD you are trading before the week/session starts. Once you know the scheduled events ahead, you can ask yourself, Could these impact my trading? Could the market reaction to this new information increase the volatility of the CFD I am about to trade or already have a position in? How may this impact my risk? Knowing what it is expected by the market before a particular important economic data release, such as US Non-farm Payrolls, can help you assess positioning going into the release, gauge market reaction to the data, and then be prepared for any potential price sentiment change and/or increased volatility. 2. Be Aware of Potential Support and Resistance Levels Ahead of your trading day, consider running through the Pepperstone charts of the CFD’s you are considering trading and make a note of 3 support and resistance levels, that you identify as being meaningful. To help you we have set out an example Trading Template below. Daily: Level: Reason: Current Trend: Current Thoughts: Support 1st: 2nd: 3rd Resistance 1st 2nd 3rd Keep this next to your trading screen, so you are aware of particular levels that may act as support and resistance, if prices move in that direction. This can help you to improve trade entry or assist you with the placement of a stop loss or take profit order. If these levels are broken at any time, you can update the template with any new support/resistance levels during the trading period. 3. Be Aware of the Daily Trends – Focus on Bollinger Bands Using the direction of the daily Bollinger mid-average can be helpful to gauge the direction of the daily trend. If the, Mid-average is moving up = price uptrend Mid-average is moving down = price downtrend Mid-average is flat = possible price sideways range The daily and weekly perspectives are the most important to be aware of, so it can be beneficial to analyse the charts from the longest timeframe into the shortest as this allows you to build a better understanding of the dominant trends. You can also note these trends on the Trading Template, so it’s available to you when you are trading. 4. Follow the Same Process for All Other Timeframes - 4 Hour, 1 Hour, Even Shorter if it Suits Your Trading. You can carry out the routine outlined in point 3, for any timeframes you are trading. Things to note, Are there any new trends suggested within a shorter term perspective by the Bollinger mid-average? If the direction of a shorter term mid-average has changed, it may be an indication of either a change or resumption of a longer term price trend. If this trend change also looks to be resuming within the longer term perspectives, this could be a more important signal, as the resumption of an existing longer term trend may mean a more extended move in that direction. Be aware, confirmation of a price trend change within a longer term perspective might mean it could take longer and offer less trading opportunities, as initially price moves may be less aggressive in nature. 5. Where, Within the Various Timeframes is Price in Relation to the Bollinger Bands? As we have highlighted in a previous commentary (please take a look our past posts), Bollinger Bands can highlight increasing price volatility within a trend. Things to note regarding Bollinger Bands, Are the upper or lower bands being touched by prices within any of the timeframes? Within a sideways range (flat mid-average) this might suggest price has reached either a support or resistance level, with potential for a reversal. While being touched, are the upper and lower bands starting to widen which indicates increasing price volatility, or contract, which indicates decreasing price volatility? Remember - widening bands within a confirmed trend highlight increasing volatility, suggesting the current price move might continue for longer than you may anticipate, while contracting bands, point to decreasing volatility, which may lead to a reduction in a particular CFDs price movement. Do the timeframes align? If they do it may suggest a stronger trading opportunity is evident. CFDs within trending markets seeing increasing volatility tend to offer greater potential than those that aren’t. In this scenario it maybe worthwhile considering only trading with the trend, not trying to pick bottoms or tops of markets, or if you do, consider a more cautious approach to your trading by reducing the size of your position and risk. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Education
by Pepperstone
9
How to Use Drawing Tools on TradingViewThis tutorial video discusses why and how traders use different types of trading tools, how to access the trading tools in Tradingview, and a few examples of how and why you might apply them. Learn more about using Tradingview to trade futures with Optimus Futures: optimusfutures.com Disclaimer: There is a substantial risk of loss in futures trading. Past performance is not indicative of future results. Please trade only with risk capital. We are not responsible for any third-party links, comments, or content shared on TradingView. Any opinions, links, or messages posted by users on TradingView do not represent our views or recommendations. Please exercise your own judgment and due diligence when engaging with any external content or user commentary.
CME_MINI:ES1!Education
by OptimusFutures
Fibonacci Extensions: Mapping Market Psychology Beyond the TrendHello, traders! 💫 Fibonacci numbers have traveled far from ancient Italian math to modern trading charts. In technical analysis, Fibonacci Extensions aren’t just mystical ratios; they’re a structured way to project potential price targets based on crowd psychology and trend continuation. But what are they really, and why do so many traders draw those lines with near-religious fervor? 🧠 A Quick Historical Detour Leonardo Fibonacci introduced the sequence to the West in the 13th century based on patterns he observed in Indian mathematics. The key idea is that each number in the sequence is the sum of the two before it: 1, 1, 2, 3, 5, 8, 13, 21... When you divide specific numbers in the sequence, you get ratios that repeat throughout nature — and, intriguingly, financial markets. These include: 0.618 (the “golden ratio”) 1.618 2.618, and so on. While Fibonacci Retracements look backward to gauge potential pullbacks, Fibonacci Extensions look forward to mapping possible continuation levels after a price move. 📊 Fibonacci Extensions To use Fibonacci Extensions, you need three points: The Start of a Trend (Point A) The End of the Trend or Impulse Move (Point B) A Retracement Low/High Where Price Bounces or Consolidates (Point C) This ABC move applies Fibonacci ratios to project levels beyond point B, helping traders visualize where the price might go if the trend continues. Common Extension Levels Include: 1.272 1.618 (golden ratio) 2.0 2.618 Each level acts as a kind of psychological milestone — not a guarantee, but a place where market participants may take profits, reassess, or react. 🔎 Let’s Take a Real Example: BTC/USDT Weekly It's not that Fibonacci numbers have magical power. The theory is based on self-fulfilling behavior. When enough traders watch the same levels — and act on them — they can influence real outcomes. The chart illustrates how Fibonacci retracement levels can be used to understand the depth and structure of a correction during a bullish cycle. Low (~$4,783) in March 2020 (COVID-19 Сrash) to the High (~$65,834) in November 2021 (Bull Market Peak) From there, the price corrected throughout 2022–2023. Let’s look at what happened at each level — and what it tells us on the graph. 🔍 Why This Matters Your retracement levels aren’t just lines — they mapped the psychology of the market: Investors Testing Conviction at 0.5 Panic at 0.618 Capitulation Near 0.786 — but Without Full Breakdown And Finally: A Rebound in 2023, Leading to New Highs in 2025 This kind of structure is textbook Fibonacci behavior — and is part of why retracement levels remain a core part of institutional technical analysis. ⚖️ Final Thought Fibonacci Extensions are not about telling you where the price will go — they’re about framing where the price might go if the current trend keeps moving. It’s a lens through which to read market psychology, momentum, and expectation. Combined with volume, structure, and broader trend context, they potentially help analysts build a more nuanced market narrative. And maybe Leonardo Fibonacci would have appreciated that his 800-year-old math is still trying to decode modern human emotion, just on candlestick charts.
Education
by WhiteBIT