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Fibonacci

EW FIBONACCI Ratios, FIB Retracement and Extension application !In this post, I'm going to focus on Fib Retracement and Fib Extension Ratios by Elliott Wave, and show you how to best use these tools. Fibonacci ratios are mathematical ratios derived from the Fibonacci sequence.The Fibonacci sequence is the work of Leonardo Fibonacci. Fibonacci sequence is used in many applications, movies and photography, space studies, stock market actions, and many other fields. Fibonacci is a proven approach for measure price movement relationships. For Elliott heads, it means Fibonacci numbers are tools to help guide us in our interpretation where we think price movements will go. The most common Fibonacci ratios used in the stock markets are: 1 - 1,272 - 1,618 - 2,618 -3,618- 4.23 (extension) 0.236 - 0.382 - 0.5 - 0.618 - 0.786 (retracement) Let's start with Elliott Impulsive Wave rules ! Wave 1: the beginning of each wave and retracet with Wave 2: may never retrace deeper than the beginning of wave 1 Wave 3: often the longest, but never the shortest Wave 4: may never retrace below the top of wave 1 Wave 5: x Fibonacci ratios : Wave 2 The most common retracements we look for in a Wave 2 pullback are either a 0.5 or 0.618 retracement of Wave 1 We expect only 12% of Wave 2 to hold 0,382 retracements of Wave 1 We anticipate 73% of Wave 2 retracements between 0,5 to 0,618 We anticipate 15% of Wave 2 to retrace below the 62% Wave 3 Wave 3 is related to Wave 1 Fibonacci relationships: Wave 3 is either 1,618 length of Wave 1 or 2,618 the length of Wave 1 or 4,236 the length of Wave 1 The most common multiples of Wave 1 to Wave 3 are the 1,618 and 2,618 If Wave 3 is extending, we typically look for 4,236 or higher Only approximately 2% will a Wave 3 be less than Wave 1 We anticipate 15% of Wave 3 trade between 1 and 1,618 of Wave 1 We can anticipate 45% of the time Wave 3 will push to between 1,618 and 1,75 We can anticipate 8% of Wave 3 will extend beyond 2,618 or higher Wave 4 Wave 4 is related to Wave 3 0,236 of Wave 3 or 0,382 of Wave 3 or 0,50 of Wave 3 or 0,618 of Wave 3 We can anticipate only 15% of the time Wave 4 to retrace between 0,236 to 0,382 We can anticipate 60% of the time Wave 4 to retrace between 0,382 and 0,5 We can anticipate 15% of the time Wave 4 to retrace between 0,5 and 0,618 We can anticipate 10% of the time Wave 4 retrace 0,618 or greater Wave 5 Wave 5 has two relationships. Wave 5 has a direct correlation to the Fibonacci relationship of Wave 3 1. If Wave 3 is greater than 1.62, or extended Wave 5 is a 1 to 1 or 1.618 of Wave 1 or 2,618 of Wave 1 I don't know any statistics, but in my experience a 1.618 or 1 to 1 is the most likely 2. If Wave 3 is less than 1,618. Wave 5 will often overextend.The ratio of Wave 5 will be based on the length from the beginning of Wave 1 to the top of Wave 3 Extended Wave 5 is either 0,618 from the beginning of Wave 1 to top of Wave 3 or 1,618 Unfortunately, my english is not so good and I work with google translate, but if you have any questions I will be happy to answer them . ➡️If you like my posts smash the like👍👍 button, comment or follow me. It helps me to publish more free education, also on request ⬅️ Fib retracement and Extension application follow 📚
Education
by TR7z
114
My new fibonacci levels toolHi crypto traders, After many years of using Fibonacci retracement, my predictions started to be less relevant since Trading View started allowing to change the fib levels from regular scale to LOG scale. Since then I got confused especially with crypto that many coins 10x easily. So i decided to get my own fib levels tool (feel free to back test it on your own). Basically, I took the Fibonacci sequence numbers of 21,34,55,89 as my fib levels to watch for retracement. For the number 76, I added fib number, 21, to 55 . Then I ‘ve noticed that between 21 and 34, the difference is the UNLUCKY number 13. Number 13, it is also the difference between 76 and 89. This gave me a confirmation that 76 is an important level to watch even if it is not a fib level. Hopefully this is helpful for some people out there. From now on, I will be using those levels for my chart analysis. Stay safe!
Education
by DEFI-trader
2
Day Trading With Fibonacci Extension (Buy)Set up on USDCAD 15 minute chart with fib retracement extension tool: 1) Right Pair? Yes- USDCAD 2) Right Price? Yes, Enter at 1.20400 with stop at 1.20300 (10 pips) 3) Right Session? Yes, end of London beginning of London/New York session overlap. This is in the highest liquidity and volume times daily of trading Forex, which is from 10 pm to 10 am PST/USD time or from Tokyo end to London end. 4) Right Time? Yes, both USD and CAD are trading during New York session and London/New York overlapping session . Using a Fib retracement and/or Fib retracement extension is great for setting targets, depending how deep initial retracement or reversal goes back into break out zone. This set up would have been a great trade: 1:3.5 Risk/Reward setup or (10 pips/35 pips). Have patience and let trade work. You can only control when you enter and exit a trade- rest is up to price action.
Education
by Anbat
Day Trading With Fibonacci Extension (Sell)Example of using Fibonacci Extension to day trade with: EurNzd 15 minute time frame today: 1) Right Pair? Yes, EurNzd during both London and London/New York overlapping sessions. (Both Gbp and Eur pairs are great r/t being in session). Have high liquidity and volume. 2) Right Price? Yes, Enter sell at 1.69500 with stop at 1.16950 (15 pip stop). 3) Right Session? Yes, During London session and London/New York overlapping session. 4) Right Time? Yes, after break out of price action and return back into golden zone (38%-62% area) of Fib. retracement area. NOTE: Waiting for the initial break of range or sideways price action and return back into the golden zone of Fib. retracement area gives you one of the safest and best risk and reward set ups in day trading Forex. This one was 1: 2 Risk/Reward setup (15 pip risk/stop/30 pip reward/profit).
Education
by Anbat
Fibonacci 101Fibonacci retracements follow a mathematical principle set forth by Leonardo Fibonacci. To put it simply - each level is a ratio between two other numbers, and there are countless examples of them being respected in the stock market, forex, crypto, commodities - you name it. For this reason, it's an essential tool in the technical trader's toolbox. There are many uses for this tool: Finding regions of support or resistance Helping with stop loss placement Establishing targets to take profit - especially during price discovery (no existing S/R levels) Rules of Thumb While placement of your anchor points is somewhat subjective - a rule of thumb is to stick with glaringly obvious swing points . Simple is best with this tool - one of the reasons that it works is that other traders (or trading algorithms) are watching the same regions of price as you are. No need to overcomplicate it! For a bullish retracement (+ targets) - begin your Fibonacci at a swing low, and end it at a swing high. For a bearish retracement (+ targets) - begin your Fibonacci at a swing high, and end it at a swing low. Personalizing Your Settings The way I have my Fibonacci retracement tool configured, it includes some trend-based Fibonacci extensions in the calculations as well. This can be done by opening your Fibonacci settings and adjusting the inputs. The levels I have as inputs are as follows: 0 - This is your starting point 0.236 - The shallowest retracement 0.382 - Shallow retracement 0.5 - While not a Fibonacci number, this is the midpoint of your swing 0.618 - Commonly referred to as the "Golden Pocket" - this is generally a very important region of support/resistance. 0.705 - While not a Fibonacci number, this is the midpoint between the 0.618 and 0.786 - a level that tends to see lots of activity, and is thus included in my settings. 0.786 - This is the deepest retracement before a full retrace. 1 - This is your ending point -0.27 - While not a Fibonacci number, a very commonly used extension target during price discovery - Target #1. -0.414 - While not a Fibonacci number, a very commonly used extension target during price discovery - Target #2. -0.618 - This is your golden ratio - Target #3 during price discovery. -1 - This is a 100% extension of the distance between your starting & ending point. etc, etc - you can extend as far as you like! Where Fibonacci extensions really shine is during price discovery - areas where there are no previous levels of support or resistance (new ATH's). You can see on this $SPY chart - using our Fib tool on the COVID crash gave us some very accurate upside targets for the subsequent rally into new ATH's. I hope this introduction to the Fibonacci Retracement tool on TradingView helped you develop a basic understanding of it's applications - make sure to like if you learned something and follow us for more! Will, OptionsSwing Analyst
AMEX:SPYEducation
by optionsswing
70
UPDATE Retracement Levels Script: Finding Support and ResistanceI have updated my Retracements Level script to alert traders to long term Support and Resistance levels based on 50% Fibonacci levels. I think that this is a simple and highly valuable tool that every trader should have in their toolbox to identify key levels that price may respect. In this video I go over the many uses: -Long term levels for Entering and Exiting positions -Multiple Timeframe Analysis -Catching Catalyst events like Earnings -Projecting Support and Resistance far into the future
BITFINEX:BTCUSDEducation
by norok
9
The 4 Hour/50 Pip Stop StrategyEach week on the 4 hour time frame charts: Monday and/or Tuesday will set the low of high for week's price action. If you can use the Fib. Ret tool and look ahead of current price action will retrace, then you can figure where the golden zone of 38.2% to 61.8% of Fib ret tool is: Rules: 1) Measure low to high of last move on 4 hour chart. 2) Figure where the golden zone of fib ret tool is or between 38.2% to 61.6% 3) Place stop loss of 50 pips from 61.8% price line dropped down 50 pips- this might go further then 38.2% (by that is okay) 4) Trend for week will mostly start of Tuesday, Wednesday and Thursday- so this is a swing trade for a few days. 5) Targets can be as follows: Set 1st target is 1:1 (50 pips stop/50 pip target): 2nd target is 1:2 (50 pips/100 pips) and 3rd target is 1:3 (50 pips/150 pips) 6) Would discontinue or exit target Thursday or early Friday if Target is not hit and not hold it over weekend, but that is your choice. Example on chart is: 1:3 Risk Reward of 50 pips stop vs. 150 pip target. (Buy Trade)- opposite can happen on (Sell Trade) * I consider that a great trade set up and profits for three days of price action. You can always bring stop up as price action goes up, but you need to let trade breathe related to being a 4 hour chart.
Education
by Anbat
How to Draw Fibonacci Channels Fibonacci Channels are used to determine fibonacci support and resistance levels within an identified trend. These channels can easily be drawn in both uptrends or downtrends to find potential areas where price action could change. Uptrend When drawing a Fibonacci Channel on an uptrend, a clearly identified trend needs to be established with higher lows being created. To draw the channel, first select the two low points on the trend, and then the high point in-between them. After the channel is drawn, the Fibonacci levels calculated can be used to help speculate price action by watching these areas as support or resistance. Downtrend When drawing a Fibonacci Channel on a downtrend, a clearly identified trend needs to be established with lower highs being created. To draw the channel, first select the two high points determined by the trend, and then the low point in-between them as shown below. Do you use Fib Channels? If so, share your ideas in the comments below!
Education
by TradingView
133
Elliot Correction Wave A-B-C (How To Draw)How to Construct A-B-C wave ? The corrective wave sequence A-B-C has following Fibonacci rules: Wave –A this is 0.618 retracement of the prior wave it must be against the prior trend. (Example: Trend was up) Wave –B this is 0.618 retracement of wave – A and may expand till 1.272 retracement of the wave –A Way To Get This Levels: Wave A- To get Fib ret level- go from start of prior trend up(low point to high point on chart)- Price will drop to 0.618 level. Wave B- To get 0.618 level - Take highest point on chart to bottom of A- price should retrace to Wave B level- this is a sell area which may expand to 1.272 level noted on Fib ret tool over example chart. Please practice with how to construct 1-2-3-4-5 impulsive waves and how to construct A-B-C- waves on different time charts- if you are a beginner charts over 1 hour will be easier to see and practice on.. Look for entries during high liquidity and volume times of session- or in between end of Tokyo close to London close.
Education
by Anbat
Using the Fibonacci Retracement ToolFirst, let’s start from what exactly the Fibonacci Sequence is: F(n+1)=Fn+ F(n-1). Now this may look scary to some of you, and you may be having flashbacks to high school math, but all this equation simply means is that the next number is the sum of the previous two numbers. So 0+1 = 1, 1+1=2, 2+1=3, 3+2=5, etc. Here is a simple table for the first few numbers: 0-1-2-3-4-5-6-7 1-1-2-3-5-8-13-21 When we move along the Fibonacci sequence, the ratio of any number and the one preceding it is 1.618 (34/21, 144/89, 987/610, etc.). This is called the ‘Golden Ratio’ or ‘Phi’ Additionally, there are other important ratios related to the Golden Ratio. These are: • .236 – Any number divided by the number three places ahead • .382 – Any number divided by the number two places ahead • .5 – Not really a Fibonacci ratio, but a useful one all the same • .618 – Any number divided by the number one places ahead • .786 – The square root of .618 These ratios are the ones used in a Fibonacci Retracement. What time frame should I use? As with everything in Crypto, it depends. If you are swing trading, buying and holding for 2-4 weeks, then I’d recommend you look at a period of 1-3 months. Of course, over this time period, your crypto should be trending up if you want to go long. You can even use the Fib Retracement tool if you want to be a diamond handed HODLer. Using this tool to spot lows so that you can DCA into the crypto is a strategy that will get you better prices than just simply buying in weekly. So how do we use it? Find the trend First, we need a clearly defined uptrend. Doing this in a bull market is not terribly difficult. It is a bit harder in a bear market, but it can still be done. An uptrend is when we have a set period of time where we are making higher highs and higher lows. You can see this by placing trend lines on the chart. Sometimes the candles will wick, or even close, outside the trend lines. This is not a big deal as the trend lines are there to establish the current momentum. In general, it is better to trade WITH the momentum of the market instead of against it. Higher highs and higher lows define the uptrend. That’s great, but how does it make me gains? The best thing that this tool does is give you a good entry point on a crypto that is trending up; an antidote to the poison of buying the peaks. You will lose money if you do this. I repeat. Do not buy at the peak. As we know, prices do not go up in a linear way. They go up and come back down, then back up, etc. Fib Retracements are the tool that helps find that new bottom. Another way to phrase this is that the ratios that we discussed earlier can be used to find both support and resistance. Drawing a Fibonacci Retracement is simple on a platform like Trading View. Just click the button that says ‘Fib Retracement’ and draw from the lowest low all the way to the highest high. Flip this if you are looking to short. To make this chart look a lot nicer just click the gear that appears when the Fib Retracement is selected. Then select ‘Extend Lines Right' Viola! As is shown on the chart the price of ETH bounced on the .618 and repeatedly on the .5 level. These would be excellent times to buy. So, if you got your hopes up and jumped too in to early, you would have seen a fairly large pullback. Many people would sell at this point because they are scared that their crypto will crash. However, the Fib Extension shows the likely levels of support. The savvy investor, you, will not even enter until this pull back has happened. It is impossible to exactly time the bottom. The Fib Extension can help use get closer with more accuracy. Final thoughts No single tool is going to lead you to the moon. It is important to know that having a successful investing strategy requires you to use this tool in conjunction with others. This is just one important piece of the overall puzzle. If you found this useful, please like, comment, and follow! Thank you!
COINBASE:ETHUSDEducation
by zsamochin
11
ETH weekly chart using silver ratio retracements & 0.4142Most of this is explaining why I like the silver ratio: 1+sqrt(2), or 1.4142. It may be a sort of analysis of ETH, but mostly I want to explain why I found the 0.4142 fib chart level so compelling as soon as I started using it (I tried several values and that one INSTANTLY had results, where all the others failed). I was working on this when I saw the front page idea* with my fib chart retrace values! (note: i had to abandon my other account since this had my number attached so I could buy being able to look at two charts at once... x.x. so i am starting fresh, but I have been using sqrt(2) as a fib level since I was trying to figure out my own tweaks on the formulas. In fact, 1.4142 and 0.4142 are WEIRDLY good as fib levels. They are more accurate than 38.6. Because it's sqrt(2), it also fits nicely into the overall template of a fib chart that is mostly focused around ensuring the levels are being respected in general, so that once applied further, the same levels can be predicted in the same manner. I'm not being annoyed about that I would love to see 1.4142 used more often in fib charts; it's just a fantastic level. It's also related to a more complicated topic, enumerative combinatronics, which is quantifying possible patterns... which is perfect for pattern-heavy price action! I initially was not very confident in TA. There are so many different techniques and it is very hard to figure out which are hopeful guesswork and which have an objective relation to the price. Learning incorrectly early on also harmed me, but it was an important lesson to learn. I am not a maths major so my explanations here are pretty minor. www.youtube.com Here's a numberphile video about the silver ratio. sqrt(2) is a Pell number. More formally, {delta} = {delta}S = 1 + sqrt(2). I wish TV wouldn't get mad at me for using math symbols and think I'm not writing in English but okay tradingview. If you were to replace the fib numbers and make a Pell chart instead, it would look like this: nevermind I made it and it was terrible so I scrapped that idea. I will need to mess with the pell series more because that many irrational numbers (19601+13860sqrt(2) = 39201.99997... ok) puu.sh Silver rectangle (as opposed to the so-called ~perfect~ Fibonacci ratio rectangles, I find this one to be more respectable!!) I'm still pretty new and only have a few months with very scattered education regarding these topics so most of it ended up being pragmatically learned and backtested. It seems to work so well that I second guess myself so often I end up making bad trades while it just follows my prediction almost precisely. I just use the retracement because the actual uses are sorta irrelevant to me as long as the ratios and levels I want are on the chart in the way I want them to consistently be used for my own purposes. What's that? I can toss this set of retracement levels and it just manages to fit better than the defaults with zero fitting required! usually Indeed, 0.2 and 0.4142 were probably my favorite discoveries in January when I was experimenting with different mathematics. A runner up is 0.8, only because it usually nests the dip after the 1 (100% value) is reached. As a trading style, the point is to buy in either for a short term trade between 0 and 0.2 and then sell at the silver level (0.4142), or, anything below the silver level is a buy zone, and 0.618 would be the sell point if there is a "projected" chart, which I like doing. It is, and always will be, weirdly accurate in predicting reversals, but never when, only the price. When is the hard part to me. puu.sh example, this is my bitcoin chart from my prediction in march and then now. I was expecting this sort of move but getting it to the exact day and recognizing that last flash crash before it happened (because it was repeating a previous impulse, so is probably some fundamentals I don't know about, whether it's monthly miner sales or just... taxes or whatever). So using presumptions of the asset's usual impulse distances (since, well, the same people are buying and selling, and unless the price changes significantly, the movement in prices tends to always be correlated to previous movements, with the exception of mean reversion inevitability if it's on a wrong side of an MA or vwap or something. Basically, trading probability and the averages. So far it was worked well as long as there is no flash power outage in China that messes everything up. But even then it seems to be priced into the chart levels. My next study is to see if I can integrate Elliot wave theory and these levels into a combined impulse prediction tool that I can use for myself objectively so I can stay in a trade with more confidence. Mostly, I gotta stay off the 15m chart.. lol. Likely fallacy pitfall explanations for the retracement fit: 1. seeing patterns where there are lots of possibilities for patterns to be formed; of course, everyone ends up ignoring the values that are not met or are blown past, since they fail to create any support or resistance. I like to use these levels that are previously unused to predict where a channel may form, because an unused channel is more appealing to price action than a used one, given the volatility a used one entails with so many orders and predictions being made for the same ones. .4142 and .2 and .8 are all slightly off of the fib levels. They are just off enough that instead of being overlapped, they skirt the level. This looks and is a lot cleaner on the chart, but may well just be seeing what one wants to see in how important the levels are. This is why I chose to focus on the 0.4142 level so heavily. It falls just short of the halfway mark (a very important value in probability given it is the median of the range I am trying to predict), which more or less confirms a halfway point. If the trend is very bullish, you can use the 0.4142 level as the guideline to try and predict where the 1 value will end up in the future. I spent some time adding some more predictions and using those levels as examples of their utility in future price projection, as well as how well it can backtest. Here is a step-by-step in how I do this for a quick guesstimate of bullish impulse prices that I find a bit more adaptable than simply the golden ratio fetish, and unsurprisingly, other such irrational numbers work well when used for different purposes. BTC s3.tradingview.com 1 s3.tradingview.com 2 s3.tradingview.com 3 AAPL: s3.tradingview.com ~base ~adjusted ~result The final thing I have to say and want to express is that it's fantastic to learn how all these things work in the book, but the book doesn't matter if you don't have your own understanding and conceptual view of the technique you or I am using. Most of all, it should make sense to you, even if it doesn't make sense to anyone else. I've come to appreciate that with charting and the great variety of ideas and methods used by everyone, closer or further from the standard. It's worth noting the standards didn't have a high success rate anyway when tested in a vacuum; but this methodology is less for efficient autotrading, and more for having a plan and reasons for entering or exiting trades at certain points. The most important element of charting, that I've come to identify, is that it cements the plan into a reference work that when changed becomes useless, so the plan must be stuck to unless price itself defies expectations beyond parameters. Thank you! I'm happy to be able to shove this all in an article finally and sort of start to work out my ideas, as I have very little concrete documentation on it yet, as frankly it's still in the growing pains stages as I am but a bab in TA. Sofie *https://www.tradingview.com/chart/AMC/zjtSxXED-Using-the-Trend-Based-Fib-Extension-Tool/ My examples focus on an uptrend.
Education
by rubyatmidnight
10
Using the Trend-Based Fib Extension ToolThe Fibonacci ratios are widely used among traders to help identify potential areas of reversal in the movement of price action. The Trend-based Fibonacci Extension tool utilizes three points on a previously identified trend in order to draw the Fib ratios on the chart. In the chart above, price was rejected twice at the ~$35.50 level, forming a double top which is a fairly strong reversal pattern. To help identify potential areas of support and resistance we have drawn a Trend-Based Fib Extension. Using the double top patterns High, Low, and High as the three points for the Trend-Based Fib Extension, the Fibonacci ratios are drawn on the chart. In this example, you can see that price action respected these levels very well until finding strong support at a potential bottom that corresponds with the 200% extension level. But, notice the region in the yellow box on this chart. There seems to be no identified areas where the Fibonacci ratios show support or resistance. While retrospectively we can tell that the area of support found at ~ $12 (141.4%) in mid-November 2017 did not produce a new bull market. At the time there was a potential reversal at that region resulting in higher highs and therefore we could have pulled a NEW Trend-Based Fib Extension as shown below. As the new Trend-Based Fib Extension is identifying areas of a new uptrend, we see that these ares are shown in a way that they were not in the previously drawn Trend-Based Fib Extension. However, price was rejected at the 61.8% level and continued downward until the 0% extension level was broken, thus invalidating this Trend-Based Fib Extension. While the upward price trend did not continue, there was a local high that was made and thus could be utilized to create another Trend-Based Fib Extension to further identify areas of reversal for the continuing downtrend as shown below. Looking at this newly created Trend-Based Fib Extension, we see that the areas moving down to the 78.6% extension level are very well respected, at which time the price found support, creating a triple bottom reversal pattern. It is interesting to note that the 78.6% extension on this Trend-Based Fib Extension pull is at $1.82, and the 200% extension level from our first Trend-Based Fib Extension pull was at $1.95, a mere $0.13 difference in price. This area where the two levels of a Trend-Based Fib Extension or Retracement group together is know as a Fib cluster and indicates areas of strong support or resistance. With price forming a triple bottom and reversing from this level, is it possible that this is the bottom of the downtrend? Could a new Trend-Based Fib Extension now be pulled from a new Low/High/Low to identify potential areas of support and resistance? Give it a try and see what you find!
NYSE:AMCEducation
by TradingView
40
How to Trade Price Action Daily!Hello Fellow Traders, Here is a Educational Video (How to Trade Impulse/Correction/Impulse) . Key things to Remember: When Trading This Type Of method - You Should Always have an Open mind when it comes to "Where the Market will Finish The correction" The Strongest Levels of Fibonacci is the 61.8 & 38.2 (These Are Generally the levels that the Market Loves to Finish its correction) The Best way to follow This Method is if the following conditions apply. Conditions - 1. Look & Find a Big Impulse On bigger Timeframes (Weekly, Daily or 4Hours) 2. Wait for The Market to Finish its Impulse (You will notice the market starts to move the opposite direction to the original Impulse) 3. Pull Your Fibonacci From The Start Of the Impulse to the End of the Impulse Aka ( From high to low = Sell OR Low to High= Buy) 4. Be Patient and wait for the Market to Reach the Aka Strong Levels (61.8 Or 32.8) OR Which Ever is Better Align With Good Structure! 5. Once you Have a smaller Timeframe break of structure or Momentum Change (You will look for an Entry Based on Market Environment + Structure) 6. Enter Your Trade Preferably of 1hOur Or 4hour Timeframe (whichever has given confirmation mentioned in point 4) 7. Always Use Risk Management / 1% Risk to Trade Entries using this Method 8. Patience is the Key to Success! Let Me know if you have any Questions or Comments Below! Your Support Is Appreciated! Happy Trading & Goodluck! See You in the Next Educational Video! Global Fx Education
Education
by Global_Fx
Educational: AB=CD pattern w/ BTC exampleOne fairly easy and useful pattern for determining reversals is the AB=CD pattern. The pattern simply looks for two rising or falling legs up or down respectively. Then one simply measures the retracement level from point B followed by the projection from C (luckily tradingview has a tool to assist with this). If these values equal a 0.618 or 0.786 retracement followed by a 1.272 or 1.618 projection respectively, the pattern is likely to indicate a reversal of the current trend. For example, above we can clearly see the pattern almost perfectly matched the required levels of 0.618 and 1.272. However, no pattern is guaranteed, so it is always recommended to seek out confirmation. As we can see in the above example, there is bearish reversal divergence that can be seen on both RSI and MACD (dotted green lines), whereby price is rising while oscillators are falling, indicating an even greater likelihood for a reversal. Upon confirmation of a reversal, one can then target Fibonacci retracement levels as key points of interest as can be seen above. A nice part about this pattern is how simple it is to spot and draw out particularly with tools available on tradingview. Hopefully you are able to use this pattern as another useful tool in your arsenal!
BITSTAMP:BTCUSDEducation
by crypto_trends
The Fibonnaci Retracement, A Traders Best FriendWe all know what the fibonnaci is. But how do implement it into trading and how does it work? The tool i use the most is the fibonacci retracement. You drag it across the chart. Drag it on starts to ends of trends and you have a fibonacci retracement now. How does it work? Now that you have drawn your fibonacci you see these ,,zones". The most common number used in fibonacci tools are 0.618 or 1.618, also known as the golden ratio. The most common example of the fibonacci retracement you'll see are rejections from 618 zone to 382. The 764 zone is thought to be a strong rejection zone. The 1 and -0.618 are thought to be reversal zones. Between 0.5 and 0.618 is the ,,golden zone" for shorts or longs. Now lets say we have a fibonnaci with the numbers 1, 0, 0.5, 0.618, 0.764 and -0.618 and i draw it on a up trend from start to finish. What is most likely going to happen is the price will go into our ,,golden zone" and retrace up. Take profit will be -0.618 or 0. And our stops will be just bellow 0.764. You can customize your fibonnaci to your likings and test to see what works and what doesn't. The zones i recomend most are those i mentoned earlier in the example. Remember to draw the fibonnaci on trends, NOT consolidation. If you liked this little guide leave a like and share it to a friend ;).
Education
by fxAljtaric
How to use FIBONACCI TOOL1. Find a suitable trend / swing You can basically find trends in every chart. The fibonacci tool achieves the best results with strong trend movements. So look for strong impulses! 2. Detect the start and the end of the trend The Fibonacci can be used variably. In my experience, the longer swings work better. 3. Drag the fibonacci tool from the start to the end point Select the Fibonacci tool (shortcut ALT + F). Drag the tool from the start point to the end point. You can change and adapt the tool at any time. 4. Detect the most important levels 0.236 Retracement: - Suitable for high momentum trades. The trend should show high volume. 0.5 Retracement: - The most important and effective retracement. It shows the average movement and many traders buy at half the price. 0.618 Retracement: - Very effective in conjunction with the 0.5 retracement. The zone between the retracements is very often a support. 5. Use the levels to trade pullbacks The retracements are generally not a 100% probability of a successful trade. The interaction with other indicators and technical aspects is key.
Education
by TizTrader
TOP 5 Tools To TradeHi traders! Working process of any trader is usually related with usage of different tolls. These tools are invnted to make traders’ life easier. For instance, you shouldn’t just build lines of support and resistance by yourselves, just choose 3 main points and use Fib ExtensionMany of you asked us, what tools we usually use in our daily stuff. Well, we use many different indicators, oscillators and other tools like Fiba, Pivots and so one. Today, we’ll give TOP-5 tools, that’ll make your trading activity easier and more efficient. Fibonacci retracement Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. They are based on Fibonacci numbers. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used. The indicator is useful because it can be drawn between any two significant price points, such as a high and a low. The indicator will then create the levels between those two points. Suppose the price of a stock rises $10 and then drops $2.36. In that case, it has retraced 23.6%, which is a Fibonacci number. Fibonacci numbers are found throughout nature. Therefore, many traders believe that these numbers also have relevance in financial markets. How to use? Put the first point to lower low, the second to the higher high or vice versa. Fibonacci extension Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a retracement/pullback is finished. Extension levels are also possible areas where the price may reverse. Fibonacci extensions are a way to establish price targets or find projected areas of support or resistance when the price is moving into an area where other methods of finding support or resistance are not applicable or evident. To study it accurately, read our Fiba Extension From Scratch (link in the description). Pivot Point A pivot point is a technical analysis indicator, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. In fact, price above the pivot point is thought to indicate ongoing bullish trend, while price below the pivot point indicates bearish one. The pivot point is the basis for the indicator, but it also includes other support and resistance levels that are projected based on the pivot point calculation. All these levels help traders see where the price could experience support or resistance. Similarly, if the price moves through these levels it lets the trader know the price is trending in that direction. Commonly, traders use Pivot Points as support and resistance levels as well as stop-loss levels. In the combine with oscillators (MFI, OBV, etc.) and Fiba levels we invent efficient strategies. Ichimoku One of the most informative indicator in world of trading. It can give you both support/resistance levels and sell buy signals. Out crew uses it every day. However, many traders consider it rather difficult to interpret. If you want to know more about it and use it as efficient as it’s possible, check out our articles (link in description) Pitchfork Andrews' Pitchfork can be used by traders to establish profitable opportunities and swing possibilities. On a long-term basis, Pitchfork can be used to identify and gauge overall cycles that impact underlying spot activity. In general, traders will purchase the asset when the price falls near the support of either the center trendline or the lowest trendline. Conversely, they'll sell the asset when it approaches the resistance of either the center line or the highest trendline. Even though the center line can be used to identify areas where a security may find support or resistance, it is generally not as strong as the two outside lines. In practice, the levels identified by this indicator are very useful for identifying strategic positions for stop-loss orders. To apply the pitchfork, you should choose the pivot of “trend start” (A on the chart). Than, chose the significant maximum(B on the chart) and significant minimum. DISCLAMER: Information is provided only for educational purposes. Do your own study before taking any actions or decisions.
Education
by Skyrexio
5
How To Use Fibonacci Retracement ToolLike price, support and resistance levels, volume, etc., Fibonacci levels are leading indicators. Most traders don’t use Fibonacci levels alone to take trades but combine them with other indicators to qualify or disqualify trades. Fibonacci retracements are typically used to make a case for entering a trade. Easiest way to use the regular Fibonacci retracement tool and measure is backward (against the swing – as shown on attached chart example). Using Fibonacci Retracements Most traders use Fibonacci retracements for qualifying trade entries. If the retracement has only come down to the 23.6 level or less, there is likely to be a further retracement. A very deep retracement (one that retraces further than the 61.8 level) is often a sign that price is not likely to continue in the direction of the original swing. If you’re waiting to enter a trade on the retracement of a move, there is a sweet spot in which you’d like to see price bounce and hopefully continue the in the original direction. That sweet spot ranges from about the 38.2 level to the 61.8 level. Note: The 50.0 level is not a Fibonacci ratio, but is usually included in these measurements because price reverses at the 50% retracement level so frequently. Fibonacci retracements aren’t usually used alone to enter trades. Rather, they are used in combination with other factors in a trading plan to build a case (or qualify) possible entries.Using Fibonacci retracement levels works best after strong and obvious price swings. Don’t force trades where there are none. Like any other market indicator, Fibonacci retracement and extension levels are just a tool. Using them will not magically make you a good trader if you’re not already good at trading. However, using them in combination with other market factors can help you filter out some bad trades, which is a good thing for any trader. As always, be sure to back test and demo trade any new trading techniques before adding them to your live trading repertoire.
Education
by Anbat