Fibonacci 101 - Golden Pocket, 50% and More !

foreign [Music] all right so I'm also going to throw this at the beginning because you know why not um but here is a really awesome breakdown on Fibonacci we can go over the volume in another video but this is a really good Channel if you have access to my Discord server I would 300 sure make sure you see this channel if you don't have access reach out to me I'm sure we can work something out if you already have a YouTube membership um it is the YouTube membership is by far way cheaper but of course you don't get everything from the Discord but as you can see here though let me open this up more what are Fibonacci levels Fibonacci retracement levels or 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 as seen while not officially a Fibonacci ratio 50 is also used which is what we call the halfway point the control point it's a really awesome uh thing but as you can see he goes from using his fibs there just to show you each one how to trade Fibonacci levels there are a couple ways to trade FIB levels but the most popular and efficient ways to trade bounces off of the 50 or the 61.8 which is the golden pocket price tends to retrace at least fifty percent of its move and most algo Traders have their orders to execute when the 50 or golden pocket levels are touched here we have price for tracing back to the 50 level you see it had the breakout came back down oh no I'm sorry he's pushing from here then have the 50 and then pushed all the way back up so he's going from uh bottom of his chart to top in this example price were traces to the golden pocket level and immediately bounces to what is known as a touch and go this happens because Algos have their orders preset to execute as soon as the FIB level is touched a lot of the times you'll see Wicks happen there this happens on all time frames and in both Bull and Bear markets entering trades using the Fibonacci levels I mainly enter on the 50 in golden pocket they are they are tried in true levels and you can build an effective strategy just using these levels alone I use two entry types that are simple and easy to follow entry type 1 pullback and reversal entry wait for price to pull back to one of the 50 or golden pocket levels when price reaches one of these levels look for price to make a reversal signal and enter on the break above slash break below the reversal candle so there you go using volume and patterns to help you find these potential reversal signals stop loss would be set above or below the opposite side of the reversal signal here we have price pulling back to the golden pocket and 78.6 level making a doji candle you were until you will enter at the break above the doji candle and a stop loss would be set at the opposite side of that candle price has a nice push up and offers another entry at the halfway point making two hammers patterns back to back once again you would enter at the break above the hammer candles and set stop loss just below them another nice move happens after the bounce so you can see here enter on the brick of the hammer kind of push down to it retracement to the golden pocket 78.6 stop loss would be set at the low of that candle you end up getting a good confirming candle they end up holding higher pushing higher again retracing again and he's giving you another example on let's say you took profits on that and we're waiting another good retracement back to the halfway point and another break above that hammer candle very solid entry there it's very you can see price finally had chance to reach the high but not only just reach the high push through it and make a new high and damn that screenshots when Tesla was at 7 33 damn laughs entry type two hold and break above slash below entry wait for price to pull back to the either the halfway point or the golden pocket level we are looking for price to find support slash resistance at one of these levels enter when price breaks above that acting support or resistance FIB level for example if price pulls back to the golden pocket you would enter above where price breaks the 50 level when price pulls back to the 50 level you would enter when price breaks above the 38.2 so he's giving you a more passive strategy to wait for the next one to break in this example we have a nice move to the downside followed by a retracement to the golden pocket level with a successful rejection you would enter once price breaks below the 50 FIB level your stop-loss will be placed just above the 61.8 percent give you that picture there so you get a good breakdown of it and feel free to pause the video on any of the pictures or any of the content if you want to read it on your own it's totally fine but yeah it gets above to it there finally gets a retest breaks lower retest breaks lower again finally getting you a good injury and a good stop loss that you have from that other FIB level and some of them work out very well where you get it drops instantly some of them need consolidation then they slowly drop over time it all depends on what you're getting so make sure you are buying good strong contracts to continue this uh there's a correct way to draw a Fibonacci retracements Lee lands the king of Fib so if you ever want to message him or J bake or me feel free to but these guys are the kings of Fibonacci correct way to draw FIB retracements identify an Impulse slash directional move and identify it swing high and swing low you will always draw your Fibonacci retracement the same direction the price moved big bearish moved down then you draw from the high to low if you see a big bullish move up then you draw from the low to the high you always go in the direction of the price what's the point fibonacciation's ratios derived from the Fibonacci sequence to calculate high probability levels where a pullback or retracement will potentially end in potential reversal Begins the example provided is strictly daily time frame let's see how we can use these levels on smaller time frames now and feel free to again to pause the video if there's anything in this that you want to kind of go over a little bit more in depth or just stare at for a little bit longer but he sees the big move to the downside he draws his FIB he sees where he can get in on a retest of any of the percentages sees a good rejection here another good rejection and then you finally see them invalidate back over as well so you can see on multiple examples here he gives you I mean he gives you one example but it's kind of breaking it down more further but he says finally impulse move directional move like this one on Amazon identify the significant High Point and low point measuring bearish move draw from high to low opposite for bullish why FIB retracements use math to find high probability levels where a pullback or retracement will potentially end a potential reversal begins this rejection created another impulse move we can take another FIB retracement for more high probability reversal signals draw a feared the same way from high to low spion 8 19 2022 start from the daily there's a very clear deduction move from 460 207 to a low of 362-17 step one check the move is down so we draw our perpetracements from high to low step two check we see price actually broke above the golden pocket ratio but it's showing signs of weakness with small candles and GAP Downs same day we get another strong gap down in price breaks below the golden pocket from our big time frame FIB with Rising volume on the intraday time frames we can now apply the same concept as our bigger time frame since we have a directional move down on the five minute what do we need a significant high and low once we set the low of 421.71 made and price beginning to retrace we have another to move down again so we draw another Fib from high of day to low of day now we just need to wait for the same signals we saw in the daily to appear in our five minute time frame like powerful candlesticks patterns such as shooting stars and gold things Dark Cloud covers Etc at those levels that we found so again fighting patterns with positioning to give you higher probability signals in this particular case we see a rising volume five minute shooting star rejecting the halfway point this happens on every chart on every time frame don't take my word for it I encourage you to take this go through charts and draw Fibonacci retracements on your own side note check out how the intraday golden pocket lines up with the bigger time frame golden pocket math big brain with Pepe but he likes the reversal here popping up he likes it here and he goes the smaller time frame to reiterate okay I like this is going down around that same area so he's not just looking for a break below 423 right here he's looking for a break and then on the smaller time frame he wants to see a close retracement so from this break he grabs a fib from this Hive day to love day and sees price for traces perfectly to about that point again where he can get in for a really solid entry you see he also points out Rising volume shooting star rejecting the halfway point retracement making it a lot easier to get in on that trade good job blue then we've talked about using FIB retracements for high probability pullback reversal signals levels to enter a trade let's talk about a lesser talked about but equally as powerful Fibonacci concept for targets extensions I wouldn't go over this in another video I don't want to jump you guys too far ahead but here's another example that he was going over but again feel free to pause the video at any point in this to kind of get a better in-depth look at it I'm also going to attach a at like an almost three minute video where I was covering and then I had to let my dog out so I restarted the video so I'm gonna give you both of those recordings including this at the beginning so you guys have a better in-depth breakdown on what you're looking out for when going over fibs but if you do have access to this channel I would definitely take time to review it feel free to tag Leland with any practice or me with any practices that you're looking at but it's really just to help you find really good reversals at really good spots um but I hope you guys enjoyed this video uh I don't really do too many of these where I go over content from the Discord so hopefully this is something you guys like we could do more of these of course we have a million Topics in all these channels here so feel free to ask questions or drop what other ideas you'd like to see in videos but I do hope that this video helps you guys out and I'll see you guys later on yo yo yo what's up Builder gang so I had a request to do a short breakdown on the golden pocket so I'm going to cover both the control point and the golden pocket just so you guys I mean of course took it asked questions I'm just to decay all of that um but a big thing I like to do just using today's price action on spy too this was pretty easy to see but a big thing I like to go over with when I use these and I'm going to scroll up a little bit to do a picture diagram first and then I'll show you on what today's price action could have done with but the first use I like to use with these breakouts are of course it sticks on the hand or anytime I see an open range breakout so let's see we saw a breakout over 404 and then we get a little bit of a slow down here and then a reversal right well the thing on Open Range breakouts is I like to go from where it broke out to where it hit before slowing down and then I like to look at that control point and that golden pocket to give me short-term retracements because sometimes you'll get a retracement to here and you get a good bounce and a test Hive day sometimes you get a good test of the golden pocket and then you go back up to high of day and these are just short-term validations and end validations so if I was to see hold up let me redo that if I was to see them hold the control point and I see a hammer pop up well that might be a good buyer reaction into the high of day to take most of my profits at and then see if I can make it to a farther Target if not and it can't break that level then it invalidates and I have to get out of that position fully right let's go back through this and we will see with a real uh review here so with today's price action we had a pretty good hold of 403 a good rejection of 404 and they ended up breaking this level here right so we instantly have a break of this level here right we have a little bit of a retest a little bit of continuation now a little bit of a retest continuation down and then we have a little bit of Base made here a pretty significant amount of candles one two three four five six seven eight candles ended up sitting on this and then three candles later we gotta retest under after breaking it and continuation down how could we have spotted this Hammer with good positioning besides just saying oh it's against a good level it's at the good 9 EMA what's another thing with grew up here we could go from the level in which it broke to the level in which it dropped to before slowing down as it uh caught on that base which really you don't want to go from there you want to go from the level to the level so we drew it about there because the meat of that support you can see the hammer actually went all the way up to the golden pocket and then pulled all the way back down before rejecting the 9 EMA and further before breaking the support so that was a really good move under a good level what's up BB gang here to cover the control point and golden pocket we had a request from someone in the YouTube memberships I don't remember the name at all I I said that I would do another video um but I wanted to cover a just quick video on both of these the halfway point or control Point like we call it and the golden pocket which both of these are really famous around the trading communities and just stock market in general because these are where a lot of algorithms like to buy a lot of bigger time investors like to buy and a lot of people have been trading around these percentages for a long time and honestly a halfway point is pretty historical in any chart in any way shape or form but let me do a quick drawing diagram first before we look at a real example from today's price action so we had a couple a couple questions asked by a few of you about Golden Pockets control points and I wanted to go over that so one main usage that I use them for you guys know is charting when I find a big range I like to add the halfway point because that adds another effective level in between that wide range so what I like to do is anytime we have an besides that anytime we have an open range breakout so let's say price push through 40405 and they went all the way to 405.50 so they broke out from here it went all the way to 405.50 right and then I start to see a red candle step in or a slow down and then we get another lower high and then it pushes a little bit lower what I like to do is I like to go from that level in which it broke so 40405 just in this case all the way up to this level here where it slowed down the high of that move right so then I can look for potential moves back towards this control point or even the golden pocket where you can watch for short-term bounces back to the high of day which if you get into a position here where you let's say you find a hammer or whatever at support of either of these it's a good Buy Signal and then your take profit needs to be pretty close to the high of day or just under it because you're not sure that it's going to definitely hit that Hive day it might make it lower high and then slow down right so a big thing is looking out for that it's pretty much just looking for reversals retracements bounces validations and invalidations pretty much so another cool example is that how can you tell it's going to validate let's say it hits here and you get a hammer candle that forms and whatever and it holds that and the golden pocket awesome that's awesome aim for a lower high of the high of day right so that's one thing you can do but a way of seeing that it invalidates would see if it broke that if it breaks that then you don't pay attention to that much anymore you can definitely look at it for rejections underneath just like you could for bounces on top it's the same exact thing as our levels it's just adding more levels onto your chart but let's cover a really good point made here on this part here so today and this isn't how I normally do it this is just a really good example from today's live stream again I added all this in live time I didn't just go back and add this so I could make it for you guys and make it work I don't like to do that kind of stuff I only like to go over things that definitely work or something that I've gone over live therefore people don't assume like oh you're just making this up so it so it fits his narrative or whatever no not at all today we had a really good hold and then a break under 403s which is essentially our break below level below 403 for Bears uh for continuation down Main Target was of course about 400 but 400.60 was the main area we were looking at we are getting a pretty good close under it right there amazing highlight a pretty good close on it right there a good retest that did break today's open but failed to break the 9 EMA and failed to push another level to really give you that uncertainty that price might actually be trying to hold this range so they ended up failing that and pushing down lower retesting lower and pretty much all the way until literally just a few minutes ago we finally got a close above the 9 EMA we have not had a single candle close under and a lot of people in the Stream were asking how could I have traded this candle because it's a very strong Hammer candle popping up with pretty decent volume of the previous Scandal showing that sellers are definitely still present and another invalidation so what was a way we could have done that well we could have gone from 403 down to here and hold up before I do that so people aren't just like why is that there the level that we added here at 401 70 is not a halfway point it's not from here to here to to give myself that in between range level it is where the golden pocket is if you go between the range but that's not what we're cover ring the reason we drew this level is because price came down to here slowed down slowed down slowed down slowed down slowed down and really never broke it giving a potential drop base drop or drop base rise which you don't know yet till you see the end validation or the validation that it's breaking over the 90ma we didn't get either of that they ended up validating the drop base drop giving really good momentum for sellers to take it down to the next level below right but a really cool thing is that if you go from the 403 level down to that base again when you draw fibs go in the direction of where you're drawing your price right so if I was doing an open range bracket to the upside I'd go from here to here right but since I'm going from where we broke to where we slowed down and I'm going down so always draw your FIB in the correct direction that is a really big rule um but look at this though so you guys know me when I cover my swing tradings I always talk about uh patterns with positioning what do we have here against that golden pocket that pattern that awesome little inverted hammer or you guys know me I just call them shooters or hammers sometimes um but it's a really really good example of a pattern with positioning so in this case you would say okay well from where we fell from to where we slowed down at Price rejected the golden pocket after attempting to break the 9 EMA potentially trying to validate that buyers are present they failed after pushing and the sellers took it back down so that's why you have that long look above bring me more Cellar pressure the very next candle doesn't need volume to break this level it just needs to close under it right now why is that because the fight happened right here so there doesn't necessarily need to be a rise in volume to take this let's say you weren't certain about that you wanted to wait for a retest well guess what 15 minutes later you got a low volume retest with the exact same candle at that level at 40170 right here again proving that sellers are in control giving you another seller controlled confirmation to the downside right so this is just one way to use them but again guys fibs need to be using the correct way there's a million ways to use them and the only two ways that I mainly use them are to see where does price want to go does it want to retest and where does it want to go from there if it does retest so let's say price bounced from here and did close over the 9 EMA where would I be looking I'd be looking for them to validate over the golden pocket and head towards 403 so that would be a confirmation itself that buyers are present even though they are down on the day so that's another way even if you're not doing it for trades it's good just to know this information so when it does come across your screen you're not second guessing you're able to say okay this is happening because of this or this is happening because of this and this is where it's happening from is to give yourself more price information on the chart in real time so don't abuse using these fibs I would just stick to using them in the ways I've been showing y'all in the streams again for halfway points when you have wide ranges on your bigger time frame charts when you're trying to use them for the smaller time frame trading or in this manner where you get an open range breakout and you see it holds support somewhere go add that fib and see all right where does price go up to retest and where does it fail from but this is a really good example I can upload more videos of course my friend Leland has a lot of really really good breakdowns on fibs and so does jbake so we can definitely upload some of those for you if y'all want um but comment below if this helped you and what other topics you would like to see me cover but this was one that I really thought was asked about a lot so I just wanted to cover a little a little bit more but I hope this helps you all and I'll see you guys on the next one thank you

Channel: Bueller Trading

Views: 992

Keywords: daytrading, best, day, trading, options, daytrading strategy, best scalp strategy, price action, volume, volume analysis, #youtubeislife, #subscriber, #youtubeguru, #youtubecontent, #newvideo, #subscribers, #youtubevideo, #youtub, #youtuber, #youtubevideos, stocks, stock market, day trader, best strategy, technical analysis, most effective

Id: Wzw2fe31sf4

Length: 18min 44sec (1124 seconds)

Published: Tue Jun 27 2023