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.
