Fibonacci Retracements Strategy Revealed // Complete A To Z Masterclass

hey traders and welcome to our first video in this video you are going to learn when and how to use fibonacci levels which levels are actually important and why how to enter and exit rates using fibonacci retracements and projections main mistakes that you should avoid at all costs when drawing fibonacci levels on your charts let's get started so when you should use fibonacci retracements in order to know the answer to this question we must understand the three different forex market cycles let's take a look so in the downtrend the market is making lower lows and lower highs the market is also making impulsive and retracement moves because this is a downtrend we want to be at the right side of the impulsivity and catch the trades at the end of the retracement move as we can see we could enter a sell position right after the retracement is over and run the trade to the downside in an uptrend the market is making higher highs and higher low the market is also making impulsive and retracement move the same as in a downtrend just in the opposite direction so if you want to be on the right side of the impulsivity we want to take the trades at the end of the retracements to run the trade to the upside so this is first scenario and this is the second scenario that's how you can capitalize on retracements in an uptrend so lastly we have the consolidation phase there is no direction there's indecision in the markets we are waiting for a breakout of this box to either side interesting fact market is in consolidation pace 60 to 70 percent of the time so in conclusion as we can see we can take the trades in a downtrend because of the strong impulsivity and we can take advantage of the end of the retracements in an uptrend is the same thing just in the opposite direction we can take the trades at the end of retracements to potentially run the trade to the upside in consolidation there is no trades for us we just wait for a breakout and the trend to form so how to use fibonacci retracements in combination with japanese candlesticks firstly let's take a look at the uptrend so firstly we need to identify the impulsive move after some bearish candlestick formation we can anticipate our retracements in order to trap the price with fibonacci levels we need to identify the swing low and the swing high once we connect it from the swing low to the swing high our fibonacci trap is set we need to wait and see if price will come to our levels after some waiting we see the retracement is potentially over we can see some weak rejections which confirm the bounce from the 61.8 percent which acts like a support after the bullish engulfing pattern is formed we can use this as an entry confirmation potential entry after the candlestick closure and our stop loss could be below the 78.6 retracements for the take profit targets we can use the minus 27.2 and the -61.8 projections so now let's take a look at the dungeon firstly we need to identify the impulsive move after the impulsive move is over we see some bullish candlesticks in the opposite direction now we need to identify the swing high and the swing glow points to draw our fibonacci retracement as we can see price is not at any of the important levels after some waiting we can see the retracement is potentially over and we get a nice weak rejection at the 78.6 level with evening star candlestick pattern formation which could confirm our trade we cannot enter the trade before the candlestick closure a potential stop loss could be above the 88.6 retracement because we entered the trade on the 78.6 after some waiting we could use our fibonacci projections minus 27.2 and -61.8 percent as our potential take profit or exit targets now let's take a look at the fibonacci levels that are actually important for your trading so firstly let's take a look at the retracements they are used for your entries they act as a support or resistance levels the 38.2 percent is used in a very strong trending markets and in order to be useful you need a very strong bearish or bullish pressure in your favor the 50 is also known as a hybrid level and is not an actual fibonacci number we personally stay away from it and don't trade it the 61.8 percent is the golden ratio it's a good level for taking trades lastly the 78.6 percent is the last level if the 61.8 percent fails this is the last level to save the main trend it is also known as an institutional level so now let's take a look at the projections so they are used for exits but remember always use them with raw market structure so first one is the minus 27.2 percent a potential take profit one 2nd minus 16.8 potential take profit 2 n minus 1 potential take profit 3. remember always use them in combination with other confluences on the chart always in combination with raw market structure so what it means never rely solely on the fibonacci retracements or projections so now it's time that we combine everything that we've learned in the real market examples let's go so now when you're on the charts we want to apply our fibonacci retracement in order to do that you should click on this left toolbar and click on this arrow and select field retracement paste it on a chart and it looks something like this your settings will be something like this so what we need to do now is put on the right numbers in order to do that i will show you our fibonacci tool click on my settings and leave this on so you can take a screenshot or do whatever you like okay so right now we are on the real charts and i will show you how we use fibonacci retracements keep in mind that this is not the only way that you can use them they can be used in many different ways effectively okay so firstly as we can see we are on a one hour time frame in order to make a top down analysis we need to start on the hard time frames so let's start with daily firstly as we can clearly see right here the market is bearish but as we can see also at the bottom we have a very strong support level which was actually retested a few times right and also here so what this means that this gives us gives us a decent chance of potentially taking a reversal trade right here on the retracement with our fibonacci tool to potentially run it to the upside so our bias on the daily is bullish also we can see we made a strong move right so right now let's hop on the four hour time frame so what we now need to do is identify market structure on the four-hour time frame okay so let me mark this off so firstly as we can see we are making lower lows and lower highs okay so lower low lower high right here we made an over another lower low and another lower high what you can now see that this one the last one didn't go below the previous lower low right and this one didn't go above the previous lower high so what this means that we are kind of stuck in this area right but this doesn't mean that we cannot capitalize and take advantage of it so now what we can identify a very clean trend line to the downside from this week to this week and if you connect it right so we could identify this as a potential cell zone right on this trendline but once we broke it we can potentially take a retracement right here to run the trade to the upside in order to do that we need to hop on the one hour time frame so as we can see on the one hour time frame we are clearly bullish right the market structure is really clearly bullish so we are making higher highs and we are making higher lows okay right now we made an impulsive move from this previous higher low to here so we made a higher high so we are on the one hour time frame we are in option right so something like this we are cycling to the upside also what we have to keep in mind that we are bouncing here from a very strong zone on the daily timeframe right and as we noticed if you go back to the four-hour time frame for our time frame market structure is still not bullish right we need to go above the previous lower high okay because this is trading our reversal from the daily time frame we should not expect that every time frame will be bullish because if they go that the price is fractal and we will firstly see a one-hour market structure shift and then four hour and then the daily okay so in order to take advantage of a fibonacci retracement we need to make some traps okay so firstly let's identify how we would draw our fibonacci retracement tool so let's zoom out a little bit as we can see we have our higher low and our higher height that's all we need right so let's identify this as a swing low okay swing low is here and this is our swing high keep in mind that this is one hour timeframe okay swing high so we could we can grab our fibonacci tool and connect it from the swing low to the swing high okay and extend it a little bit to the right just like this so let's uh delete this so the pr the chart is going to be more clear okay from the swing low to the swing high this is kind of a consolidation zone and from here to here there was not a real impulsive move so we want to draw our fibonacci retracement for the real impulsive move which market respects okay so right now we need to identify what's going on so as we can clearly see we have the 38.2 6 1.8 at 78.6 levels so let's add the 50 level also so what we've learned before that we want to take the trades from 61.8 or the 78.6 all the levels before the 38.2 and the 50 there are traps which institutions want you to get in the trade so they can grab your liquidity and run the trade to the upside potentially from these two levels so 61.8 and 78.6 okay so right now we need to identify that we want to take the trades from these two levels right but of course we need more confirmation so firstly as we can see it's this small this is a 30 or one hour small resistance area which could potentially be retested and we could use it as confluence for our trade idea also what what we can see is is we have a trend line from the bottom right if we connect it okay so right here this could be our area of interest okay to potentially grab a trade and run it to the upside okay so let's go candle by candle and let's see what happens so as we can see price is retracing to the downside we rejected the 38.2 the level where we don't want to take the trades right so potentially just to give you a perspective you could potentially be in the trade right here right and you could be trapped and your stop loss would be hit just like this right so that's the danger of trading the 38.2 and the 50 percent retracement because you always have a chance that price will make a deeper retracement to one of these two levels where we want to take the trade and then go to the upside so it basically technically lose two trades before a potential winner right and also keep in mind that this is not a 100 winner so you could lose even more right so you would lose one trade here and if we take a look we're bouncing now from the 50 right we need some rejections to potentially consider some buys okay so as we can see potentially if you'd be greedy and want to enter on the retest of the trend line you could enter another trade right here right stop loss below the week okay and let's see what happens yeah so you would be stopped out again okay so this is the danger i just wanted to point this out um also one more time keep in mind that this is not the only way to trade but this is how we trade and how we how we find fibonacci retracements to act great and be very respected okay so this right now is interesting why because we are bouncing from a 61.8 retracements where we wanted to and what we have in common also from the bottom we have this actually four touch right right here and also one more time let's take a look at the four hour time frame just to see what happens so let's go to four hour and as you can clearly see this is a strong trend line so let me actually mark it properly so one touch to touch we did had a breakout right here and potentially we want to catch retracements on this area of interest right here this is where we made a week to potentially run it to the upside right just wanted to show you this idea what we're looking for once again so let's go back and rewind where we were before okay so we have what we wanted we made a beautiful week re-test on the 61.8 level we also retested this yellow resistance line and our trend line so we have three confluences four confluences with fibonacci level which confirm our trade idea so right now we are good to enter the trade but firstly we want to wait for bullish candlestick to show us that this is respected right and so we can take the trade to the upside we don't want to blindly just enter on the rejection right we always need some bullish pressure in this case to confirm the trade so let's go canada candle and let's see what happens okay so we made another retest this is even stronger so our confirmation is even stronger after the week we test and we could potentially enter this trade maybe even on the 30 minute time frame right once we see some bullish pressure taking these bearish candlesticks so actually let's go on the 30 minute chart so on the 30 minute chart is the same thing let me zoom out it's the same chart just on the 30 minute right let's get rid of these arrows so it's gonna be more clean okay so right now for entry right we want to take out at least these bearish candlesticks right so maybe in this area right here we could enter the trade so we are more safe and have a higher probability so let's see what happens okay perfect so we would enter the trade right on the 30-minute candlestick closure right and our stop loss could be below the week right so this will be our trade and let's take a look of how we would set our projections so for that let's open a one-hour time frame so one our candlestick closure would be here that's why we hop on the 30 minute right and enter here right so if you would waited for the one hour canvas the closure we could not take the trade because if you would take the trade here our risk to reward to a double top would it make sense right this is the beautiful thing about the lower time frame analysis if you're going from the daily to 30 minutes right to execute the trade you could get this type of sniper entries and your risk reward ratios could be good and probability could also be high because you're trading for the deeper retracements okay so right now our stop-loss and entry is identified so let's take a look at where we would exit the trade and where we would take some profits off the table right so in order to do that of course we want to go on the hard time frames okay so let's erase some of this stuff so it's going to be a little more clean okay perfect so on the four-hour time frame we want to combine our projections so this one and this one right with market structure you don't only want to take partial profits of the table on the projections blindly but you need to have some sort of confirmation to go with your analysis right so let's identify it so of course first take profit or exit would be at the double bottom right no matter the time frame right here okay and after that we personally take some partial profits of the table and set our stoppers to break even okay so first one and then let's take a look at the minus 27.2 let's zoom out a little bit and as we can see market structure we have some weak rejections here and if you scroll a little bit more we can see a beautiful weak rejection and area of interest is right on the -27 so this could be a great take profit too right to take some partial profits off the table and let's take a look at the last level at the minus 61.8 [Music] and we clearly can see that the price you suspect in this area left a nice four hour weeks right here right so this makes sense to take some more profits of the table so we can now potentially extend our target a little more right and we want to monitor monetize this trade on the one hour time frame right so we have more information so let me go over the idea real quick so at the bottom as we said we have a strong daily uh support right which was retested four times we made a strong impulsive push and we broke out of this trend line and potentially made a retracement on this 61.8 with strong confluence we have a trendline also right and this support retest okay so that's the idea so let's hop back on a one-hour time frame and see how it monitor our trade so let's go candle by candle and see what happens so i'm going to show you how we would uh how we would monitor this trade but of course as i said many times this is not the only way that is correct and that works right so let's go candle by candle okay so let's see what happens okay so we get a strong bullish move right this would be basically two to one risk to reward right and of course what you want to do in this case you want to take some profits of the table what we personally like to do is take 25 or 50 percent of the table right this is of course trader's choice and move our stop loss to break even so we can be safe so let's go on we get a strong bearish candlestick but our stop loss isn't break even even here right so we don't worry about it this is a winning trade a risk free trade already so we are not stressed let's go candle by candle and see what happens next okay so we got a really really strong impulsive push to the upside so of course we want to take another 50 or 60 of the table right because at this point if you have a three to one risk reward and we don't want to be greedy right we want to take risks of the table so for example you could be 50 60 of the table here and 25 here right so our last take profit would be at this minus 61.8 so let's see what happens okay and we crushed it right so this could be your take profit number three right and you could be all out of the trade right this is how we like to monitor our trades of course keep in mind guys this is not going to happen every time right i just picked a beautiful example to show you what i mean and how you can take advantage of it so let's hop back on the four hour time frame and see what happens so to keep everything in perspective we will i will go over the trade once again okay so firstly on the four hour time frame as we see we broke it out of this trend line we made a re-test on the minus sixty one point eight percent that minus just six one point eight percent as a confluence we had this trend line at the bottom on the one hour time frame and this yellow resistance re-test right so this is three confluences in our favor and we combine that with fibonacci retracement so my point is here that you're not going to make money just by drawing fibonacci retracements on the chart blindly you will always need some sort of confirmation right and you need to take advantage of the market cycle and do a top-down analysis so all the time frame has to agree and be in your favor to make fibonacci retracements and projections work so lastly let's take a look at the main mistakes that you should avoid when drawing fibonacci retracements so first one be very careful around the 23.6 38.2 and 50 retracements this doesn't mean that you cannot take the trades from this level but you will have a much higher percentage chance of winning the trade if you will stick to the 61.8 or the 78.6 deeper retracements secondly use them only in training markets ignore the consolidation phase at all costs lastly always use them in combination with other confluences on the chart never ever rely solely on the fibonacci retracements you want to combine them with technical analysis such as trend lines emas support and resistance and impulsivity has to be on your favor on all time frames so we hope that you found this video helpful and you gain some clarity about drawing fibonacci retracements and projections so we are planning to release a lot more content in the upcoming days so feel free to subscribe to our channel happy trading and take care guys

Channel: Trading Stoic

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Keywords: Fibonacci Retracements Strategy, fibonacci retracement strategy, fibonacci retracement strategy mt4, fibonacci retracement strategy intraday, fibonacci retracement strategy forex, fibonacci retracement strategy tradingview, Forex Retracements, Forex strategy, Retracements in Forex, How To use Fibonacci, How to use Retracements, Profitable trading strategy, How to make money strategy, Beginner Forex strategy, Fibonacci secrets, mt4 strategy, Stocks strategy, fibonacci stocks

Id: RBJAhrx_2Is

Length: 22min 50sec (1370 seconds)

Published: Mon Mar 15 2021