Fibonacci Retracement Strategy: AMAZING way to trade with the MACD

today we'll be going over Fibonacci retracements and at the very end we're going to talk about how to trade these with the MACD so here's an overview first we're going to go over what the Fibonacci sequence is then we're going to cover how to draw the Fibonacci lines next we'll go into how to trade them with price action and then finally we'll close up with how to trade them with the MACD a little bit of history first the Fibonacci sequence is a mathematical sequence in which every number after the first two is the sum of the two preceding ones it's a little bit confusing so here are some examples as you can see here are some examples 0 1 1 2 3 5 8 13 21 34 and so on if you take the numbers 1 and 1 and add them together you'll get 2 you take the next two numbers in the sequence 1 and 2 add those you'll get 3 the next two numbers in the sequence are 2 and 3 add those you'll get 5 so on and so forth Fibonacci lines are used as a retracement calculator in any market the percentage of the retracement provides support and resistance areas for the current price action the most important of these levels is the 0.618 level although the point 5 0 0 area also offers very strong support even though it's not a technically a fibonacci percentage we still use this in our trading so let's take a look at how to draw these lines we're looking at the Apple daily chart from 12 3 18 to 7 25 19 and this is an example for an up move step one is to locate a recent extreme low that's marked in yellow here step two is to locate a recent extreme high that'll be in teal step 3 connect the recent extreme low to the recent extreme high with the Fibonacci retracement tool now these Fibonacci retracement tools should be found in any standard charting platform when you connect the extreme load to the extreme high the Fibonacci lines will automatically draw I've highlighted the point 6 1 8 and the point 5 0 0 areas just so that you can see them better there in teal if you like the content please consider subscribing it really helps us it's a stay motivated to create content like this and to continue to try to educate traders all right so let's cover a down move and how to draw you know Fibonacci retracement lines for a Down move here we're looking at the USO daily chart and the dates are available here's a down move so in step one its opposite of what we did for the up move we're gonna locate a recent extreme high first that again is in yellow here step 2 is to locate a recent extreme low that will be in teal next we'll connect those will connect the recent extreme high to the recent extreme low with the Fibonacci retracement tool I've already done that here and I've shown these lines already drawn okay so let's go into how to actually trade this let's incorporate some price action and come up with the strategy alright so going back to the same Apple daily chart step 1 let's locate a series of recent higher lows essentially what we're doing here is making sure that we verify an uptrend so here's a low and here's a low as delineated by the white horizontal lines as you can see this is an uptrend step to draw the Fibonacci lines on the most recent move up this is exactly what we did a few slides back alright here are the lines I'm gonna remove a couple just so just to make room for some more text step 3 wait on the downside move to retrace back to either the point five zero zero or the point six one eight levels without closing below them if you look at the pink line you can see that that red candle came down the wick touched the point six one eight area but did not break through it step four look for a red candle followed by a green candle make sure that the green candle closes above the open of the red candle I don't want you to be confused by that make sure the green candle closes above the open of the red candle that is seen right here we're gonna go ahead and zoom into this just so I can explain this a little bit further alright we're just zoomed into that price action so we've come down and we tested the point six eight line here's the red candle open and here's the red candle close here's the following green candle open and the green candle closed what we want to see is that the green candle close is greater than the red candle open let's go back over that again there's the red candle open the red candle close the green candle open in the green candle close what we want to see is that the green candle close is greater than the red candle open after testing but not breaking either the point five zero zero line with the point six one eight line in this case it was the point six one eight line all right now on to how to trade this with the MACD indicator I've already drawn the lines here on the same Apple example this is an upside move and the dates were previously shown on previous slides let's go back and incorporate some price action and go back through those steps just to review so step one let's locate a series of recent higher lows and an uptrend we've done that step two let's draw the Fibonacci lines on the most recent move up we've done that step three wait on the downside move to retrace back to either the point five zero zero or the point six one eight levels without closing below them all right we have that step four look for a red candle followed by a green candle in the price action make sure the green candle closes above the open of the red candle alright we've already demonstrated that as well now we're going to add step five for the MACD step five verify that the MACD has crossed over and the negative histogram has turned positive that is seen right here on this chart we're gonna zoom into this just to show you a little bit more clearly alright so here's a zoomed in view sorry if it's a little bit pixelated of the MACD this is a MACD cross up okay see the yellow line crossing the T line in this example next we have a negative histogram turning positive go over that one more time I'm gonna verify after we've done all the previous things with the Fibonacci retracement verify that the MACD is crossing up and that the negative histogram has turned positive noticed that this is happening at the same time that we see the green candle closing higher than the open of the red candle above in the price action so we have an uptrend we have a Fibonacci retracement test to the 0.618 area and then we have a green candle closing higher than the open of the previous red candle now we look below for step 5 and we verify that the MACD is crossed over and the negative histogram has turned positive we have a MACD crossing upwards and a negative histogram turn and negative histogram turning positive this is what we want to see when trading the Fibonacci retracements with the MACD hope you enjoyed this video please consider watching a couple of our other videos and don't forget to subscribe

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Keywords: fibonacci, entry orders, fibonacci extensions, fibonacci retracements, fibonacci trading, fibonacci trading strategies, what is a fibonacci retracement, how to use fibonacci, MACD, MACD Trading, macd indicator, MACD Trading Stategy, MACD Analysis, forex trading, candlestick charts, candlestick patterns, price action, price action trading, MACD Explained, MACD Basics, MACD Signal, MACD Tutorial, MACD Forex, Fibonacci Forex, MACD Stock, Hindi, Malay, Indonesian, German, Filipino

Id: Js6c_Oi4Nd0

Length: 7min 22sec (442 seconds)

Published: Mon May 04 2020