The Fibonacci retracement tool is an excellent addition to any traders technical analysis – however most traders simply use the levels as places to park their orders.
Fibonacci is a powerful predictor of trend strength and most traders forget to connect the trend they are currently working with together with the information that the fibonacci tool is trying to tell them. The key is to understand that if the market has momentum the lower fib levels will act as stronger rejection of a pullback.
If the pullback in price action touches the 61.8% fibonacci retracement level then that is a very strong warning side that the trend has failed. This means traders should now be looking for overall reversals of the primary trend rather than extensions of the move they drew the fibonacci retracement tool across.
There are many ways to use the tool, but this a mis-understood but powerful understanding of the information the fibonacci levels are telling the trader.
Check out our article on Fibonacci here:
https://howtotrade.com/blog/how-to-use-the-fibonacci-retracement-tool/
#forex #fibonacci #trading
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@clausewiseai
absolutely useless
@clausewiseai
absolutely useless
@1sttrader728
Absolute bollocks
@jjaustralia88
Sorry im a bit new, but you're saying that if you've got strong green candles that go above the 61.8% level then that means the trend is.. weak?
I would think the opposite. Dont really understand
@prototypexero
Hell, I was using it backwards! Thanks for clarifying this.
@shotby4k
you only mentioned why traders get the setup wrong, never showed nobody how to use it correctly…. "Let me show you how to trade with it correctly "
@lukemyllykangas6676
I completely disagree! I’ve been trading for seven years and love the golden pocket! 618 and stop just beyond the most recent swing. 😊
@jabuqini6437
😂😂😂😂
@KaptiveGaming
This dude need to clarify if he’s trying to short or long, which would completely give the opposite results to someone who assumes differently
@SSEnrich
One positive thing with Fibonacci. At least the way I use it one can get a large stop. It does not mean I don't lose quite often. I do. However. Very often when I allow the trade to run against me (having passed 61.8 and 78.6) very often it will come back in my direction. What I use to exit is Kijun Sen. Having a fixed target like 2 to 1 or something will just make the whole thing hopeless. So in my opinion. The way to make Fibonacci work is to have realistic exits. Of course if the trade appears to work. Let it run. If it shows signs of reversing again. Get out.
@OMfxAcademy
LMAO you've got to be kidding me! 😂🤣
@amiruddinarifuddin
Ok
@simmzbeatz9tyfive
nahh you lying
@crossroad2nowhere
This guy lose his brain cells with his hair? The FIB tool is the golden tool for elliot wave and this guy literally just made himself look like a tool.
@payatick
Barely made sense
@KingDongOfHeaven
Shouldnt you use this tool on a long term trend to identify a potential reversal? I have never used it on a short term 🤷♂️
@omarabu1
🔥🔥🔥 needed to hear this, thanks!
@rampuratictok1809
I dont understand this my metor siggested me this.
@AjayiAdeoti
Please send me link to Fibonacci
@elvergia3714
There is only one problem with me using this. I get a hit of that fire dope, and i go straight to the moon. No pull backs for me what so ever. Stright to the moon 😅
@PeaceNinja007
But I haven’t been using it at all 😮🤷♂️
@banginzaza
He's right! I was told this long ago.
@obiubabs3841
That large green candle is supposed to show you that the trend isn't correcting but reversing
@DAYTRADERICT
Rule no1 – Never Trust a Bald Trader ❤
@KingKiloOfficial
Now explain it like I'm retarded? Cause I heard you, I saw the visuals, but I still don't understand what you're saying.
@Xavier-b3l
What timeframe did you put it on
@dowjonespi3483
Wrong too
@NextGen_Mining_Tools
I've been struggling with the Fibonacci retracement bug on TradingView too! Has anyone found a fix?
@elchayphanuel4656
What He is trying to explain, in simpler terms, NO MATTER THE TREND YOU ARE FOLLOWING, once your fib retraces ABOVE the 50% level, WATCH OUT FOR A TREND REVERSAL and vice versa
@BigFinance2
Great fibonacci us🎉
@HashingHeroes
When it comes to Bitcoin mining, the tutorials on YouTube are surprisingly in-depth and useful. I've learned so much and already started mining!
@Sisiopath666
Make money Not that simple,but this dude give a good lesson, additional: need to check rsi, MA, trend line, watching news,open X fomo trend etc. u need to do lot a things, drain your energies and mentality
@andrewcole5658
This guy is wrong. The Golden Zone is between the 50 and the 61.8 level. This has been thoroughly backtested and proven that price often continues the trend here. how can he now say that the 61.8 level doesn't work??
@extradollarfortomorrow
You could go in much earlier if you know dominance breakout… Or Type 2 Engulfing. When it happens… Use Fibonacci low/high to close price of a candle that made the breakout to get the pullback level then wait for it, then trade the continuation….
@mightysailor94
Disagree
@BitStark
Whoa, Ether Machine bagging $654M ahead of Nasdaq listing! Don't see that every day.
@FlashChain_Tools
Bitcoin's 7 Day Average Hashrate hitting 1 ZettaHash – that's a powerhouse level. Long live BTC!
@ForexcastWork
i dont agree
@WANNARICH-b7s
What about the golden zone 61.8
@elroyjetsondanceparty
Is he saying that if you go from a swing high, to a swing low, that if it retraces to 0.618 it’s most likely going to be a trend reversal? I have a hard disagree if that’s the case
@gnr2396
this is not really correct. If it goes to the 618 level and shows resistance it can go back down with a vengeance especially if you know how institutions trade. i really dont know what he is talking about. I mean i wouldnt blindly trade at that level without some sort of confirmation, though even a candlestick would be decent confirmation
@tradingville
I combine with stochastic
@darrenwendroff3441
Really great vid, but I agree with what others wrote about shorts/longs. But your point is excellent, much thanks for creating this, helpful insight.
@UmeshRai-h8k
everyone has their own way and viewers are confused. Some says 61.8% is the golden zone and reversal from this level is nice. But here its totally different
@nataliemirza
I didn’t understand it 😁
@georgebenson8548
Nonsense 😂
Keep learning Sir… you'll be surprised.
@enochbaffoe6836
Becareful Bro
@RobotFX
Mind blown! I never thought about it that way before, but now it all makes sense.
@QuantumEdgeTrader
I started using Fibonacci blindly before… now I actually wait for confluence with support/resistance.
@meffy34
Seeing the breakdown on how momentum affects fib levels was solid, ran it through exness today and my entries felt cleaner than before and a bit more in control