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Fibonacci

Trading is a never ending war for price territoryHello there, fellow traders! Quick educational post today, with potentially useful insight for your trading practice. You probably have noticed already: trading is never ending war for price territory. And you probably have learned also about fibonacci levels. Standard ones, like 0.382, 0.5, 0.618 etc. Still, there are a few other levels which, used in tandem, are capable to provide a clear picture of the battlefield , if you will. So, here is a map you may want to keep for your reference. Traders will work inside this structure as long as there is an overall indecision regarding what is fair price. Eventually, one side will "speak louder", and come out victorious, breaking the structure, and moving price to a new range. Then, new trenches and fight zones will be defined, and the process will start over. Of course, there is more to price analysis than this, but it is for sure a useful way to look at it. Hope you like it and that it helps you on your trading journey. Cheers PHInkTrade
BITMEX:BTCUSD.PEducation
by PhinkTrade
Pulse of an asset ala Fibonacci: UMA nearing Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the buyers still there? Enough to absorb the selling power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Just above the Impulse is a common "Accumulation Zone". Of interest would be consolidation between the 1.0 and 1.236. If accumulation seen, then a break and retest of 1.236 is the entry. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos .
Education
by EuroMotif
1
Short-time downtrend and long-term uptrend is still working Confirming last analysis we are in a very nice retracment pattern in Gold. As we expected down trend worked and price came towards its last big support of 1861usd.If you are intraday trader note carefully that downtrend is still working and and high is just a retracment. As you can see in my daily chart we have a nice unbroken demand zone 1790to1816 and a strong support zone inside that. I personally will be waiting to open long position there. If you areusing 4h timeframe or less, you can sell for short-time but be careful about long term trend. It is heavily uptrend.
OANDA:XAUUSDEducation
by asharifan
gbpjpy time to decide hello everyOne i am back with another analysis about GBP as I thought Gbp is back in the business now its time to decide if Price went up and passed lower high ( that mentioned in the chart ) we are facing with bullish market actually MA <200 confirms that we are facing with bullish market if price went down and breaked trend line then MA will be confirm that as well notice that this is last available bullish channel that Already exists so if we saw a break out in trend lines Its time to go short with 80% probability if you had any question comment in bellow I think its time to decide which side you want to be sellers Or buyers ! targets are placed in the chart as well and I will attach some more reasons in comments so Follow me and Be Aware ☺ ♥ This is enjoyable Trading with Mky ♥ ☺
Education
by TradeWithMky
2
The Trend is Your Friend: Basic Elliott Waves ExplainedIn this post, I'll be providing an in-depth explanation on Elliott Waves, specifically Impulse Waves and Corrective Waves. I personally use Elliott Waves a lot, and as it seems like the majority of my followers are beginner traders unfamiliar with the concept of waves, I decided to do an educational post on it. The concept of Elliott Wave Counts are extremely technical and advanced, so in this post, I'll only be going over the two most common waves: The Impulse and Corrective Waves Elliott Waves Background Information The Elliott Wave Theory was named after Ralph Nelson Elliott, who concluded that the movement of assets could be predicted by observing and identifying a repetitive pattern of waves. He was able to identify specific characteristics of wave patterns, making detailed predictions based on the patterns. Very simply put, the direction of a trend unfolds in 5 waves (impulse waves) and any correction against the trend takes place in 3 waves (corrective waves). The 5 impulse waves are labelled ‘12345’, and the corrective waves are labelled ‘abc’. *A bear market would show a downward trend, indicating that we’d see five waves down, and three waves up. Smaller patterns can be identified within bigger patterns. As demonstrated in the diagram above, we can see that the impulse and corrective waves in green, are combined to form a larger wave in black, which is also part of a larger wave in red. In technical terms, this is the classification of wave degrees. On Tradingview, the smallest to largest, the degree goes as follows: Miniscule, Submicro, Micro, Subminuette, Minuette, Minute, Minor, Intermediate, Primary, Cycle, Supercycle, Grand Supercycle, Submillennium, Millennium, Supermillennium. The idea of using smaller patterns fit into bigger patterns, can be coupled with the Fibonacci relationship of the waves, offering insight on optimal levels of trade opportunities, and calculations of risk reward ratios (RRR). What are Fibonacci levels? Simply put, Fibonacci levels are a series of numbers discovered by Leonardo Fibonacci, in which a golden ratio (1.681) is derived by dividing a Fibonacci number with another previous Fibonacci number. The Golden Ratio derived through the Fibonacci can be found in predictable patterns in nature from atoms to huge stars in the sky, as nature uses this ratio to maintain balance. Such ratios are very commonly found in the financial markets as well. Elliott Impulse Waves (12345) The Elliott Impulse Wave, which unfolds in 5 waves, has a few guidelines in terms of the rules that must be kept, and references to the Fibonacci ratio. - An Impulse Wave can be subdivided into 5 waves (For instance, the black wave in the diagram is subdivided into smaller green waves) - Wave 1, 3, and 5 are impulsive. - Wave 2 cannot retrace more than the beginning of wave 1 - Wave 3 cannot be the shortest wave of the three impulse waves - Wave 4 cannot retrace below the peak of wave 1 - Wave 5 needs to end with a momentum divergence - In terms of Fibonacci ratios, there is not set answer, but there are some references we need to keep in mind: - Wave 2 is 0.5, 0.618, 0.764, 0.854 of Wave 1 - Wave 3 is 1.618, 2, 2.618, or 3.236 of Wave 1-2 - Wave 4 is 0.146, 0.236, or 0.382 of Wave 3, but no more than 0.5 - Wave 5 can be the inverse 1.23611.618 retracement of wave 4, or 0.618 of wave 1-3, or equal to wave 1. Elliott Corrective Waves (ABC) When referring to corrective waves, this can include the use of other wave counts. In this post, we’ll be specifically looking at a corrective count also known as the Zigzag. - A Zigzag is a corrective 3 waves structure that is counted as ABC - Subdivision of Wave A and C comes in 5 waves - A Zigzag is a 5-3-5 structure (In the diagram above, we can see the black Zigzag waves, which consist of a 5-3-5 wave count in green) - Wave B is 0.5, 0.618. 0.764, or 0.854 of wave A - Wave C is 0.618, 1, or 1.236 of wave A - If wave C is 1.618 of wave A, it can either be a 3 or 5 waves count. Application We can take a look at Bitcoin’s weekly chart as an example of how Elliott Waves work. While I haven’t included the specific counts for simplicity sake, it provides a good idea of how the market moves. Overall, we can clearly see that the trend is bullish. However, prices don’t always shoot straight up without stopping. It breaks out, corrects slightly, and breaks out again. The repetition of impulse waves, and smaller corrective waves, is what completes the uptrend. This is why ‘buying the dip’ is a smart move during a bull market. Corrections are inevitable even in the most bullish market, and taking into consideration the fact that the trend is your friend, such corrections would merely be a buying opportunity. Almost all assets take one step back for two steps forward. This is how the market works according to the Elliott Wave Theory. Limitations Elliott Waves have a critical weakness: it’s extremely subjective. Even while looking at the same chart, traders can count different waves, as it’s difficult to pinpoint the beginning or end of a wave. As with many other tools in predicting the market, it seems that the most common case is that traders are almost 100% accurate, or completely wrong. As such, I personally like to use this tool merely as a reference in weighing out probable scenarios, rather than solely relying on my rather subjective wave count. Final Remarks I tried to dissect the basics of the Elliott Wave theory in this post. The concept itself is extremely advanced, and the explanation I provided above is merely the tip of the iceberg. Understanding Elliott Waves, while it’s not a silver bullet in trading, can help traders understand the overall trend, identify probable scenarios, and calculate optimal risk reward ratios based on wave targets. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight.
BITSTAMP:BTCUSDEducation
by Michael_Wang_Official
6
Pulse of an asset ala Fibonacci: LRC two spurts of Golden GrowthThis Chart is a an example of a "Golden" Fib series. This Concept is from "Chapter 5" of my going "book". This Religion is of the universality of the "Golden Ratio". . My "Book" detailing my Methodology with Numerous Examples: Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only .
COINBASE:LRCUSDEducation
by EuroMotif
1
Pulse of an asset ala Fibonacci: BTC Golden Fib and some signsThis Chart is a an example of a "Golden" Fib series. This Concept is from "Chapter 5" of my going "book". This Religion about the universality of the "Golden Ratio". Marked on chart are "Pings", ricochets that one can almost HEAR. "Not all Pings start a reversal, but Most reversals start with a Ping." Top had a "Loud" ping, with possible bottom of several loud pings. Every Ping is like a bug hitting a spider's Web. The vibration alerts and emboldens other strands. Thus we observe the behavior at each strand for clues. . My "Book" detailing my Methodology with Numerous Examples: Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only .
COINBASE:BTCUSDEducation
by EuroMotif
1
No one catches entire trends. Start by OTP only a small part. Markets trend. Those trends can be divided in 3 + 1 phases: Phase 1: Other names include Accumulation/Reversal/Wave 1 No one really know we are in phase 1 until much later. Phase 1 is very often followed by a deep correction. This was spotted by Elliot (from Elliot Waves) as well as Dow I think? From the market itself this appears to be true. We can see it for ourselves. So we know 2 things, assuming those are true: a- Phase 1 only truly materializes until the trend is well established. b- Phase 1 very often will correct to 78.6% or more. So clearly, catching reversals, assuming it is possible (it is but I think most pro's hate it and most retail only wants to do this), will realistically never let people ride entire trends. Assuming the goal is to make money not lose it being wrong all the time with awfully low RR. Paul Tudor Jones said "For twelve years, I have often been missing the meat in the middle, but I have caught a lot of bottoms and tops." Retail that has no rules no discipline and generally no clue are the ones that all absolutely want to catch tops and bottoms. The irony. From OG's we often hear not to try to catch falling knives that no one can win but some people do it so it is possible simple proof. Would I recommend it to the eager thirsty noob that think he will buy bottoms then sell tops? Yes, but just to have a good laugh. The full PTJ quote is "Everyone says you get killed trying to pick tops and bottoms and you make all the money by catching the trends in the middle. Well, for twelve years, I have often been missing the meat in the middle, but I have caught a lot of bottoms and tops." Some examples: And so on. What people think they'll manage: What profiteers claim to provide to people that want to catch tops and bottoms Bitcoin 2014 bear market => Starts with several big retraces. Bitcoin 2018 bear market Bitcoin 2019 top hunting EURSEK I went for this reversal (chart is reversed) And well... it did not continue... So good thing I got out! Then you also have to greedy money grabbers. Let it run, but not too much. It is not possible to get the whole trend out of it. If someone can do it then welcome richest person in the world. Phase 2: Meat of the move/Wave 3 Things start getting positive/negative. That's really when things reverse into a new trend, and after it goes higher/lower than phase 1 participants start to notice and start thinking that it is possible we are in a new trend. It is often the biggest part. The trend, with 1 being the start and 3 the end. This is the most important and most lucrative one so I'm keeping it short here. It's not that fun to just follow a well established trend. Unless you are in and it keeps going your way and you keep screaming it will go to zero like a crazy person. Now that is alot of fun (: Phase 3: The end/Wave 5/Distribution/Ending Euphoric/Vertical/Exhaustion/Divergence/Ending Diagonal/Etc 1000 names I like wikipedia description on that one: "Wave five is the final leg in the direction of the dominant trend. The news is almost universally positive and everyone is bullish. Unfortunately (?), this is when many average investors finally buy in, right before the top. At the end of a major bull market, bears may very well be ridiculed (recall how forecasts for a top in the stock market during 2000 were received)." I doubt anyone knows or recalls for the older ones how bears were treated back in 2000. My teachers in high school said I had a contradictory spirit. Some after hgih school said I "thought I knew things". LOL 😆. What they meant is other people are idiots and I am not. Not my fault the herd is always wrong. I am not going to pretend to be stupid just to "fit in with the herd of sheep". They're still struggling teaching high school kids and I'm chilling treating the market as my personal ATM. And then you got the suckers that get excited at the top. The most non-subtle example is Bitcoin permabulls. Wow those guys. They have been bagholding for 2-3 years now. They'll still be bagholding in 5 and I'll be counting my millions. We'll see who'll (still) be laughing. Playing reversals is possible because it is rather obvious when the herd starts getting interested and gets crazy. Being obvious does not mean there is a magical way to call the exact top, and it will often take several losses before getting it right. Concerning magical top & bottom calling, well I will get into it further down this idea :) And then there is the opposite. Note at the time there was no way to know as far as I am concerned where the bottom/top would be, which is why we make a list of tops/bottoms and play carefully. If someone knows where tops and bottoms will be then show me your trillions: It does not always just end up vertical at the top... Phase +1: ABC, the correction Yikes. No thank you. There are 5861 types of correction (more or less). Often very choppy and disgusting. This is bad. Don't trade corrections. Let day trader-gamblers lose money through commissions and get caught in massive moves against them when it breaks. All together You're taking risks for profit. This top & bottom calling thing, and expecting to catch the whole move, is truly delusional. Even in his most famous trades George Soros did not catch everything. Don't go too early, don't be difficult or you'll miss it. It's hard to balance it out. I have to stop going too early (too late for reversal and too early for meat of the move) Need to be careful with conditions before rushing in. Got the perfect exit never have any issues. There is no perfect way to filter out the trash, no perfect way to know what will be a good entry... Get punished for doing the right thing, get rewarded for doing the dumb thing... Those that do not know this and won't quit, will eventually learn An entry system truly worthy of the greatest myfxbook robots 💩 and Bitcoin trading experts 🤤.
Education
by MrRenev
3
Pulse of an asset via Fibonacci: ETH near a minor Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
COINBASE:ETHUSDEducation
by EuroMotif
1
What Are Fibonacci Retracements and Fibonacci Ratios?How Fibonacci Ratios Work Before we can understand why these ratios were chosen, let's review the Fibonacci number series. The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the ratios used by technical traders to determine retracement levels. The key Fibonacci ratio of 61.8% is found by dividing one number in the series by the number that follows it. For example, 21 divided by 34 equals 0.6176, and 55 divided by 89 equals about 0.61798. The 38.2% ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194. The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example, 8 divided by 34 equals about 0.23529. Fibonacci Retracement and Predicting Stock Prices For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature. Technical traders attempt to use them to determine critical points where an asset's price momentum is likely to reverse. Fibonacci retracements are the most widely used of all the Fibonacci trading tools. That is partly because of their relative simplicity and partly due to their applicability to almost any trading instrument. They can be used to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. Fibonacci ratios can even act as a primary mechanism in a countertrend trading strategy. Fibonacci retracement levels are horizontal lines that indicate the possible locations of support and resistance levels. Each level is associated with one of the above ratios or percentages. It shows how much of a prior move the price has retraced. The direction of the previous trend is likely to continue. However, the price of the asset usually retraces to one of the ratios listed above before that happens. The following chart illustrates how a Fibonacci retracement appears. Most modern trading platforms contain a tool that automatically draws in the horizontal lines. Notice how the price changes direction as it approaches the support and resistance levels. Fibonacci Retracement Pros and Cons Despite the popularity of Fibonacci retracements, the tools have some conceptual and technical disadvantages that traders should be aware of when using them. The use of the Fibonacci retracement is subjective. Traders may use this technical indicator in different ways. Those traders who make profits using Fibonacci retracement verify its effectiveness. At the same time, those who lose money say it is unreliable. Others argue that technical analysis is a case of a self-fulfilling prophecy. If traders are all watching and using the same Fibonacci ratios or other technical indicators, the price action may reflect that fact. The underlying principle of any Fibonacci tool is a numerical anomaly that is not grounded in any logical proof. The ratios, integers, sequences, and formulas derived from the Fibonacci sequence are only the product of a mathematical process. That does not make Fibonacci trading inherently unreliable. However, it can be uncomfortable for traders who want to understand the rationale behind a strategy. Furthermore, a Fibonacci retracement strategy can only point to possible corrections, reversals, and countertrend bounces. This system struggles to confirm any other indicators and doesn't provide easily identifiable strong or weak signals. The Bottom Line Fibonacci trading tools suffer from the same problems as other universal trading strategies, such as the Elliott Wave theory. That said, many traders find success using Fibonacci ratios and retracements to place transactions within long-term price trends. Fibonacci retracement can become even more powerful when used in conjunction with other indicators or technical signals. Investopedia Academy's Technical Analysis course covers these indicators as well as how to transform patterns into actionable trading plans.
Education
by Saeed966
6