Full Guide on Fibonacci Retracement *MUST KNOW*

so in the previous video i did about fibonacci i told you guys how to use fibonacci and how to apply it and all like the freaking beginner stuff right so this video we're gonna dive deep into how i use the fibonacci to trade how i personally use the fibonacci retracement to to trade so that you can learn from me and you can implement it to your own trading journey right and i always want to say that yo fibonacci retracement to this is okay that is such a mouthful fibonacci i'm just going to call it fibonacci so for fibonacci that is the most important tool that i use like i freaking love it man that is so powerful it's literally so powerful i use it every single time that i trade and it has never once failed me maybe it failed me like two to three times but it really works guys i'm gonna show you right now so most of you guys think that like fibonacci is like very complicated to use but it's really really very simple a lot of youtubers just like the complicated things right but we like to keep things as simple as possible on this channel so when you want to pull out your fibonacci is when price retraces so whenever you start seeing price retraces pull out your fibonacci retracement too here's what i mean so you see price going up right and price is already way up here so you do not want to get right here because if you get in right here your stop-loss must be all the way down here so you want to wait for price to retrace first right so when price starts retracing the first thing you want to do is to take out your fibonacci retracement to this one right here and it will drag it from the lowest point before this major push phase that's so basically going to drag it from the swing low all the way up to the swing high right here because this is the highest point before price starts retracing doing this retracement so now you have brought your fibonacci retracement too so we are expecting price to retrace to either one of these levels the 38.2 50 61.8 and 78.6 either one of these retracement levels what i mean by that is that price can literally retrace to either one this one this one this one this one either one and it's still counted as a retracement however if price break through this 78.6 level and just like go back down like this guess what it is not a retracement it's a reversal that means price is reversing and it's gonna hit back down so in this case let's just say that price retrace to the 50 extension level which is this one right here the 50 extension level so now you do not want to enter here yet you want to wait for some sort of signs that show you that price is done retracing and price is going to continue heading back up so right now once we see some signs we enter for a buy so next so you did this next phase and the kiln going up and now price is going to go to the extension levels which is either the negative 27 or the negative 61.8 level so right now let's say price went up to this negative 27 level so in this case if you enter for a buy right here your take profit will be at the extension level right here it's really as simple as that guys so this is what i like to call the a b c d the a b c d pattern guys as simple as that so like i said a lot of youtubers like to complicate this thing into like some magical mystery thing that nobody know how to use but it's really really just as simple as that i hope that you can really get a sense of this so they can incorporate it into your own trading journey or style or strategy now the most common question i get is how do you know that price is done retracing right here because price can easily go down even further right before it starts retracing don't worry i'm here to show you a few examples so that by the end of this video you'll be able to master fibonacci retracement 2 and trade it and use it to get high win rate trade opportunities right now let's say that price did this beautiful up move and then you cannot enter right here right so what you want to do is to wait for price to retrace so the moment you start seeing price retracing like you can see all these black candles in a row that is when you pull out your fibonacci take a fibonacci blow it from the swing low which is right here this is the lowest point all the way up to the highest point before price starts retracing which is right here this is the highest point right here so now we got the a we got the b and now we want to wait for price to form c which is the retracement so price retrace all the way down to the 50 extension level right here this area right here right so this is your 50 extension level you can see right here so now that price retraced all the way down to this 50 extension level we have your a we have your b and we also have your c right here so at this area here this is when you know like price is consolidating around this area so we want to wait for price to show us some sort of signs that tell us that price is done retracing and it's about to hit back up so now it consolidates a little bit right here and then we start seeing a bullish engulfing candlestick right here and then it shows us a lot of bullish momentum that's one sign right another sign was that around this area here price did what so many long weeks one two three four five five long weeks so that means that price coupon got pushed all the way down here but then the buyers always come back in to push the price all the way up so one two three four five long sticks five times it failed to break past this level this shows us that this is a very very strong support aerial and it's also our retracement level at this area here you see like price failed to break past this level multiple times one two three four five five long weeks and also give us this bullish engulfing candlestick this is when you can easily enter for a buy position so if you enter for a buy here guess what your take profit will all the way be at the negative 27 extension level right is the d which is d right so now this is the next push price went all the way up to the negative 27 extension level which form your d a b c d as simple as that guys yep so right now if you have got out of the trade and you have took profit for this trade what i want you to do is to clear away this fibonacci clear away the fibonacci and you can see you can draw another fibonacci so if you zoom in right here that you can actually draw like a mini fibonacci from here right all the way up here because this entire big candlestick if you go down to like let's say the one hour time frame you'll see that it's actually like a really really massive candlestick right here right it's a freaking massive candlestick right here so you could not enter right here because if you enter right here your stop loss must be all the way down here guys and that is not worth it you want to wait for price to start retrace right retrace from your new higher low then that is when you can enter for the next push phase so in this case what i want to do is to drop my fibonacci so what i will do is to take out fibonacci drag it from the swing low all the way up to the swing height so because it's the highest point right here this is the lowest point drag it all the way up to the swing high or you can even put it right here at this week right here this is a swing high right here so right now we got your a we got your b so now we have to wait for price to retrace to either one of these levels and in this case price retrace to the 50 extension level once again right here 50 extension level and look at this it's showing us the exact same thing one long candle two long week candle second third of fake my math okay one two three four five six seven seven long weekenders that means that price failed to break past this level seven times guys seven times three of the break pass that is when you know that this is a strong s retracement level and price is about to peel back up like skyrocket back up so you have entered for buy right here when you see that price rejected this level seven times and you also see some sort of upwards momentum right you can see green candle green candle okay the reason why it's yellow here is because my charts are yellow and black all right i will switch it up later but basically yellow candle yellow candle and you see there's a lot of upward momentum right that is when you can enter for a buy because you know that price is not going to easily like break past this area and reverse and head back down anymore because this shows us that there is bullish momentum so you can enter for buy here and you place your take profit all the way up at the negative 27 extension level and you can see price pew pew pew went up and smash our take profit i'm never kidding guys look at this price went up all the way there right here smash our take profit that's what they will look like in the downtrend so in the downtrend prices did this beautiful down move right and you cannot enter right here because if you enter right here your stop-loss must be all the way up here so what you want to do is to wait for price to retrace first so the moment you start seeing price retracing like this right pull out your fibonacci guys so i'll drag it from the swing low i mean swing high all the way down to the swing low right here so you plot your fibonacci retracement to plot it out and you can see that in this case price went up retraced all the way up to the 61.11 it's no longer the 50 level guys it went up to retrace to the 61.8 level so now price went back up to retrace to the 61.8 level and you want to wait for price to show you some sort of signs that price is done retracing and price is gonna continue heading back down so at this point you can see price from a double top one dog double top so double top looks something like this and this shows us that price is reversing and it's gonna collapse and head back down so price shown us a double top which show us that there is a lot of bearish momentum in this market and price is going to continue heading back down so the moment we see that double top and we see it forming at this 61.8 level 61.11 right here guys and guess what that is when you can know that that is when you know that price is done retracing and price is going to continue heading back down so if you have entered or sell somewhere right around here when a double top has formed and then this is when you take profit at the negative 27 extension level right here so you can enter for a cell somewhere right around here and then place your take profit all the way down at this negative 27 extension stop loss above this 61.8 level because this is the last lower high last lower life so you can see this was just a beautiful trade price went down and smashed your take profit and this was like a very nice one it's a three wrist three rod ratio trade yup so the fibonacci retracement is really really a insane magical tool which i really really love because if you can know how to use it if you understand how to use it it's going to help in your trading so much this tool is just like it will just change the way that you trade forever so go ahead and practice and backtest this strategy on your charts and let me know how it goes welcome to the unfiltered section if you are still watching this that means you are really really serious about becoming a trader and i am so proud of you in this unfiltered episode i'm gonna talk about your mindset oh i'm not good at trading oh hi hello you're a you're a bro like what are you all about they shut up i'm trying to concentrate yeah so i see a lot of you guys in the comment section it's like oh i'm a bad trader oh i'm a bad trader i lose this amount of money so what so what man like i've blown multiple accounts i've lost so much money and i still don't think i'm a bad trader maybe i did think that i was like at the start of this trading journey but then i realized that that should not be the mindset that you need to have right so honestly like nobody is born a good trader and that's just the truth nobody is born a good trader you think that when i just hop out of my mom's womb and i just decided that i want to be a freaking trader of course not right so you see so many like youtube videos telling you that oh like i made fifty thousand dollars from trading forex but what they don't tell you is how much they lose like all of the great traders all of them are profited profitable traders that i know lose a ton of money before they actually become profitable so chances are you are in that phase you're in that phase where you are losing money you're not seeing any results and you just feel like you're the worst trader in the world and trust me when i say that that is so normal bro like i feel the exact same thing like when i was first started out i feel the exact same thing so chances are whatever feelings you are right now i feel the exact same thing so when you first start to learn to do something you are always going to be bad at it that's just the truth in my first year i'm bad i'm bad at trading just think about it guys like remember like the first time you learned how to ride a bicycle for me i was like constantly falling off the bicycle and i just found it so hard to find my balance but eventually after practicing and as time passes riding a bicycle actually becomes like muscle memory and now i can just like ride a bicycle blindfolded although i would prefer not to but it's the same thing with trading when i first learned how to like trade and analyze the chart do all the technical analysis and draw trendline support and resistance all that right i was like hmm am i drawing this trend line correctly and i will literally spend like hours analyzing this chart any charts but now i can literally finish analyzing a chart and decide whether i want to buy or sell within five minutes i've proven to you in like i think the previous video i i talked about how like i reveal like how fast i can trade like it's like somewhere on my channel you can just go search it like revealing how i trade like a pro that was like the title or something and i literally analyzed a chart in five minutes and that's the same chart that i use to take one hour to analyze training actually becomes like muscle memory now technical analysis actually feels like muscle memory now and it's not always like this it hasn't always been like this i was bad once too yup so there are basically two types of mindset right a growth mindset and a fixed mindset so a fixed mindset means that you believe that intelligence is fixed right so if you are not good at something you think that oh you will never be good at it oh i'm not good at trading i'll never be good at trading i'll never be like that that freaking trader on instagram no way well the growth mindset means that you believe that your skills can be developed over time that means that you can believe that you can become a better trader you can progress as a trader and as you become a better trader guess what the money just come along as a buy product and if you want to succeed in life or in trading in the markets in general you must have a growth mindset choose the growth mindset to be honest people with a growth mindset tend to achieve so much more they believe that they can improve they know that success takes a lot of hard work there is no like overnight success right overnight success usually require years and years of hard work so they are willing to work for it that's why if you want to be successful in trading you need to start by changing your mindset you need to stop having like the loser mindset of oh i lose a few trades in a row and now i'm like the worst trader in the world hell no hell no it's not about getting rich quick it's holding a skill and that takes time and dedication period that takes a lot of time a lot of mastery to master a single skill right it doesn't matter if you are working at any jobs or let's say you are a painter you like to paint stuff it takes years for picasso to become like i don't the best painter in the world it takes years right that wasn't overnight you know what i'm saying just because that you lost a few trades in a row does not mean that you are the worst trader it just means that you are just a beginner and there is a lot more lessons to be learned i remember reading this book called outliers by malcolm gladwell and he mentions the 10 000 hour rule so the rule basically says that it takes up to 10 000 hours of practice to achieve success in any field that means that if you are trading it's gonna take you 10 000 hours to actually start achieving success and chances are if you're watching this you have not reached 10 000 hours of practice you are not even like close to reaching 10 000 hours you are probably like 1 000 hours bro what i'm saying is like skills takes time to master it takes time right remember that exponential curve i showed you in the last episode you are right here once you reach right here this is when your income is gonna explode your success is gonna explode man you do not need to be like the best trader in the world to make money right you just need to be disciplined enough to start making consistent profits my final advice for you would be to be smarter than the gamblers do the work trust the process learn from others who do the work like me and you will have success right just start by watching all my videos watch till the end implement my advice back test or the strategy practice it on your demo account or trade your life a car whatever and once you start making less and less mistakes you start becoming more and more disciplined that is when you actually become a better trader and when you actually become a better trader money will come as a result and for most of you wondering what is this that is a freaking slide all right i did not get punched in the face you know i'm saying if you found this video helpful make sure you like this video and comment down below what do you guys think of this episode and hit on that subscribe button and the notification bell beside it and welcome to the tribe and remember you're just one freight away

Channel: The Trading Geek

Views: 203,947

Keywords: day trading, day trading strategies, stock trading, forex trading strategy, swing trading strategy, day trading strategy, fibonacci retracement, fibonacci retracement strategy, fibonacci trading crypto, fibonacci trading strategy cryptocurrency, best fibonacci retracement strategy, best fibonacci trading strategy, fibonacci levels for intraday trading, how to trade fibonacci retracement, best fibonacci retracement settings, how to use fibonacci retracement in forex

Id: ztt9o64MPgI

Length: 17min 41sec (1061 seconds)

Published: Fri Aug 12 2022