this video is going to be the easiest
and fastest explanation of Fibonacci retracements when it comes to trading price action
that will exist on the internet, so whether you're
trading cryptocurrencies Forex or indices, I'm going to show you the best way to write
up a Fibonacci retracement tool [Music]
welcome back to the channel everyone my name is Artie and this is the moving
average a show where we discuss everything day trading to keep you
profitable I'm going to try to keep this video under five minutes. let's go
straight into the charts okay so the first thing you're going to want to do is
click this Fibonacci retracement tool right here draw it on your charts
it's going to look different than mine go to the settings and adjust all your
settings to exactly to look like mine, take a screenshot, save it for future
reference.
Okay now if you look at fibonacci what I want you to do is look
at the market structure lower highs and lower lows as soon as the market structure does
n't another lower low you look at the opposite direction Trend
as soon as that happens you're going to draw and start your Fibonacci tool
retracement from the point where it had its lowest to the point where it
could not continue Market structure the 0.5 level and the 618 is known as the
Fibonacci gold zone, this is the area you you want to enter trades but
you don't want to enter blindly you want to look for some kind of price action reversal at that point
if you want more information about price action reversal
whatever Candlestick formation you can watch the video at the end of this
video, it will be marked in the thing, so for me the rejection of this area
was a double bottom, we had one touching two touching flat line, but on the RSI we
had a low and a higher low point that there is a deviation as soon as it is rejected is
, you can get into your trade now if you look at profit levels, that
's where it's subjective depending on the momentum of the move, you're almost
guarantee ed to get back to that higher high that was the reason why I it says
, is because the probability of price making a double top and then
consolidating is very high if the momentum is high but this is your
original take profit one the negative 382 is going to be your take profit 2
and the negative 618 is going to be your take profit three be in holy crap scenarios
you will have a negative 1.618 that is if you swing trading also if you
think the price can reach it definitely look left and see if there are
any price targets in that range if they are then it most likely
to continue, so as you can see we had a gold Zone retracement, then we had more
strength and a faster move and a 382 retracement, these are simply
retracements on retracements when you take it down after a smaller time frame
, you can see that you se lfs can find Fibonacci retracements on smaller time frames and
smaller retracements move the concept behind this is that if price moves down quickly
in a certain severe action and starts to pull back it just needs a
break and the price is either half down or 60 down which are both very good
psychological levels Fibonacci retracements are seen everywhere in nature
and this is the way humans and nature behave price has pulled down
Fibonacci retracement has continued keep in mind that they are more
meaningful on a higher time frame than on a a lower time frame but you
can still get good scalps on the five minute chart if you want to see
that video on price action candle formations you can
watch it here if you enjoyed this video and you like the way I teach make sure
you on subscribe the channel and leave a like on these videos, thank you very much for
watching and see you in the next one
