How to Trade with Fibonacci Levels

so today we're pretty much gonna talk about Fibonacci we're gonna actually talk more than just Fibonacci numbers we're gonna actually talk about some other major numbers too so you know there's the main Fibonacci numbers that you may have heard everyone talk about 50% portrays when thirty eight point two sixty one point eight and stuff like that but there's some other numbers they're not necessarily Fibonacci numbers but they're very critical to trading - okay and we'll discuss those I'm just gonna throw everything and say they're all Fibonacci numbers but they're not really they're Bonacci okay so just so that I don't have to keep on going for a tongue-twister and say these are Fibonacci's and these are not and keep on saying that for every slide I'm just gonna say these are the key numbers okay so we'll talk about what Fibonacci's are and how they derived and the main ones and then we'll talk about the non main ones they're non Fibonacci ones - you guys have kept of that yeah okay normal procedure disclaimer this estate this is for education use only if you decide to take a trade you're doing this at your own discretion this is for my licenses say yes yes yes you also acknowledge all the charts of them thinkorswim from TD Ameritrade okay you know so definition Fibonacci you probably have seen this in in high school and so forth so basically Fibonacci is when you take two numbers you add them together and basically give you a new number then you keep on adding it to the previous one and you get a whole sequence of numbers okay so you can read this you're on but basically here's if you got 0 1 right 1 1 you add 1 1 what's that - 2 plus 1 is what 3 3 plus 2 is what 5 5 plus 3 is 8 8 plus 5 is 13 so it's just taking the previous number Adam and adding it to itself and then coming up with a new number you guys okay with that yeah now the Fibonacci numbers come from the ratios so if you take 8 and divide by 13 you get the 61.5 3 right turned out from my person into a percentage that's basically 61.5% retracement you guys see that 38.2% retracement and so forth you okay with that so Fibonacci is all they're doing is taking easy each of these and dividing by the previous number okay the after the number so you have fifty percent sixty one point a thirty eight point two and so forth so if you look at the key ratio values they're right here you guys see these you could do square roots and stuff like that these are counted key key values that you can see based on Fibonacci's and also key values there okay now the key Fibonacci ratios are basically right here twenty three point six thirty eight point two sixty one point eight hundred percent everyone understand that other key values are fifty percent seventy eight point six eighty eight point six and one twenty seven okay you guys okay yeah okay now these are percentages sometimes you may see them in decimal form so in decimal form this may be look like one point two seven this may look like eight point eight eight six this may look like point seven eight six and so forth okay now you got all these numbers and all that now there's two things when you look at Fibonacci's in your chart there's Fibonacci retracements and extensions and it's confusing as hell which one to use there's also these fibonacci arcs fibonacci circles Fibonacci x third there's all kinds of Fibonacci stuff okay so today I'm going to do is we're going to show you how to use Fibonacci retracements okay and you really don't need to learn any of the others because if you click at two different points one minute two retracement one minute's a extension depending on where you click on the chart so if you learn how to do the Fibonacci retracement and understand if you click from here to here they give you a retracement if you click from here to here and give you an extension and if you think using that one tool extension in once scenario and a retracement another you could use one tool for everything you don't need to learn the rest of all you guys understand that so I'll go through and explain what I mean by that in a minute you guys okay right say yes okay so now in Fibonacci you gotta have a trend that means you gotta have an upward movement or downward movement okay now most of you guys think upwards so we're gonna give you some upward examples to kind of ease you into everything and then what we should give you some bearish examples you guys okay with that so if you look at this this is the upward movement right yes right so this is basically where people are buying buy and buy and buy and buy agree now at some point people are gonna stop buying and some people are gonna take profit agree so when people take profit this is a retracement you okay with that when people start buying a gain and they break this last point right here when they break this point right here this is called extension so wherever it stopped and after it goes past that point it's now extended past this point where people are taking profits you guys in the center so retracements are basically profit taking then extension is a continuation on to the trunk you okay that trend okay so basically wherever it stopped before it's got to get past that in order to start the extension you okay with that so that terminology as simple as that now you don't have to learn all the stupid tools out there okay you can learn one tool and we're gonna show you how to do both the retracement and extensions agree all right okay so now notice here I click here first right you guys see that then I click here so what's happened is this move has already happened agree the current bar is right here so I already have an upward movement and I want to see where the profit taking may end and it start to go back up you guys understand yeah I do not want to go I see that people were buying buy buy buy I do not want to go against them so I want to buy but I saw this too late so I need to wait for some people to take some profit after they take some profit now I'm willing to buy you okay that there's a lot of retracement yes if you think about what there's one here where it retraced from here to here there's one here this retraced this is what there's tonnes though this leads me into something else take the bigger picture first okay you don't want small profits right you want to take the big ones come on it you want to take the bigger ones right so what you want to do is you want to click here which is the beginning of the trend agree yeah then you want to click over here where the trend ended you okay that and then when you bring your mouse down it'll draw all these retracements see it gives you the fifty percent retracement sixty one point eight three two point forty eight point two yes so these values are where it could bounce off and stop going down and start going up so the way the Fibonacci works is it could stop at this line here that one or that one that's three choices agreed notice on the first one it didn't stop there did it on the next one it came here and then they didn't stop there but it definitely stopped here didn't it yes now here's some rules if you got a only a 38.2% retracement that's not a major pullback it's not a major profit taking it's still a major trend going up when you have a trend that's going up it's gonna pull back these 38.2% retracement you guys understand out no they're not major at all that part of the major trend going up there minor profit-taking but never major you guys understand that yeah yes yes okay so you could never trade if you want to be a Fibonacci trader you never trade the 38.2% retracement you need a major pullback to trade Fibonacci okay if you trade a 38.2 so let's say you're traded here right the reward risk is not going to be good the money manager it's not going to be good because look what's happening you're see all these little pull backs right here those are all 38.2% retracement depending on how you so this whole major trend is created from a way that goes up pulls back a little goes up pulls back a little goes up pulls back a little okay you can't make money on this day there it's not good money management you need it to pull back drastically okay so if you see something a 38.2% retracement you're never gonna trade it the only ones you're gonna trade are 50% or 60 1.8 you guys okay with that those are what you called a major pullback 50% or 60 1.8 okay with that those are the only two that you could trade if you ever go past this sixty one point eight light they say that institutions to too much profit to they got out too many of their shares and now this is no longer trend so most people say if they're every since their penetrates this line right here that means the institution is sold too much to a point you'll never go back and resume the trend so the trend is over you guys okay that this is your last line of defense right here if institutions sell past this point they're saying that they don't have enough shares where they don't have faith in this particular instrument to keep on going up so your stop has to always be below this line right here okay okay right I know you guys are late get up you guys okay cherry your stop kit always has to be below there so if you bet on me bouncing off the 15 percent your stop still has to be below the sixty one point eight great if you bet over here your stop is below there so which one has low risk sixty one point eight that has a lower risk compared to you betting on it bouncing off the 50% sorry well this is where this is training it's a probability game right you're playing the probabilities there's most there's a lot of trades that just live off by 50% line that's it that's all they do for a living I'm not going to tell you if they're successful and consistent but majority of them stand by 50% long they think that's it they think that's the holy grail okay but the pair is a problem this trend is going up right it's nice and smooth if there are big price movements the gap between here and here can be huge so right now it looks as small right it doesn't have to be that small it could be this big so you could take on a big big risk if you pay off a 50% and have to go below the 61.8% retracement no you see that is it right okay so now once you trade this right now what you do is you could sit there and bet on it coming all the way back up here to retest as high great yes no now let's go through and let's just walk through a chart let's go look at some charts let's go look at your a USD now you always look on it want to look on the higher time frame not lower it does work on the lower but if you're learning this you want to stick to the higher time frames agreed yes no yeah so this is daily okay so this is a major trend going down right yes you guys see that so now let me go to my drawing tools choose Fibonacci retracements so I'm gonna click on the beginning of the trend to the end and I'm gonna click on the very bottom of the bar and when I click on there you'll overlay all the values for you you notice I have the yellows or the key ones right notice what it did it went all the way to 50% and what it did it held and bounced you guys see that yes so now once you're in this trade right where can it go to we said one possible value is here right what if it falls short ago in there what if it goes past that where can you take profits what are the levels so the retracement tells you when to get in agreed yes the extensions tell you where to get out or take some profits okay so now I want to play with this let's say I click from here to here right what if I click from here to here well this gives me extensions don't they yes you see that it could go to here which is the eighty eight point six it could go to one hundred percent or I could go to one twenty eight so the three levels they could get to once I'm in our here here and here so all I did was that click the other way for the extensions because I want to see once I get in here right how far this is eighty eight point six he came back eighty eight point six of this major trend up here when it comes here it comes 100% back when it comes here it goes twenty-eight percent over this major trend there you guys understand that yes so let me do that again so I just clicked over here grind went to Fibonacci retracement okay now I got a recognize a major trend so this is a major trend all this hasn't happened yet agree right so I'm gonna click on the beginning of the trend then click on the bottom this gives me exactly where I can enter I can enter on a fifty percent retracement or the sixty one point eight on going embedding any going down this is where the profit level will stop all the profit taking you guys clear yes you had a question you're lost not lost dad I just and 51% it stopped here at the 50% level people say yep remember you stop you stop has to be above the 60 1.8 so if your stop is up there this is where you sell you be you still here at the 50% or 61 point and you're betting money going down your buy stop just in case you if you're wrong it has to be above this line right here so your stop is over here just in case if you're wrong sorry extensions oh don't worry we're getting there so do you guys understand this is where to enter use retracements to know when enter but you have to have a major trend if you have it if you don't have a major trend can you do this you use it so many what that's what your this is say you're saying this is a trend so it's always gonna go 100 to 0 to 100 but you just gotta have an upward movement or downward movement that looks smooth this could be a trend too right there from here to here that could be a trend too these are trend we're looking at the big overall one if you can't see it go to a higher time frame until you can see it bukka so first do you understand entry entry is a 50% to short it or 60 1.8 he's two yellow lines green so we're basically saying the institution started selling selling selling selling selling here when we got to this point here they started taking profits profits profits profits profits here at this point they could be done selling sorry done buying to take to get profits and new people could start selling at this point there's more sellers than buyers now so this starts going down you guys understand out so here this is where the profit taking could stop here or here agreed if the profit taking stops here here then we got a chance of it going potentially coming down all the way back to 100% we don't know that yet okay so if we enter here here now we need to determine what were to get out to get out we draw extensions so remember how we drew the retracement where are they clicking here to here you know you just click in Reverse you click here at the bottom first and then click to the beginning of the trend and it automatically draws your extensions now and the key ones to note are eighty eight point six which is right here one hundred percent is into 128 agreed so those are your three possible profit levels to get out it okay yes notice here if blue past this eighty eight point six but then look what it did it pulled back stopped right there held it and then went and blew past it so now you know how to get in and you know we're to get out right so you got two levels to get in and three possible levels to what get out it's a good question where's your stop what let's let's make sure we got the entry and exits correct you guys understand the aim tunes when the answer you do retracements after a big trend whether it be bullish or bearish and it's always at the 50% retracement or the sixty one point eight great after you enter then you draw extensions your three extension values are our eighty eight point six one hundred percent and 128 majority of people will not agree with me on the eighty 8.6 I don't care I'm telling you it does it is that you know I'm saying most people will never show you the eighty eight point six but it is a very very key number reason why is if the trend stops here and then reverses you got a higher low which signifies that this trend is completely over JW Gann duck sorry WD Gann which is the most successful trader on all time says a trend is over when you have a lower high from the previous one or vice versa so if it stopped here and started reversing this right here it would sit there and form a higher low than the previous one to signify the trend is over you guys understand that right so most people don't look at this eighty eight point six most people are here gunning for the hundred percent I'm warning you and I'm warning you very hard right now eighty eight point six is a Kiki level do not overlook that because if you're gunning for the hundred percent he gets to here and it bounces and reverses kiss your profits goodbye I'll talk about the stop everyone thought Facebook was going to fifty two hundred you could blame whoever else you wanted this okay you want to play here blame Spain they blame Italy blame Norway this is euro USD who do you want to blame Russians Russians will rush in the crowd sat there and got really volatile during a soccer game will you want to blame them because the Euro went down who do you want to play so what if the crowds doing it what do you think let me tell you sometime I'll tell you what let me tell you something if I go to New York and a taxicab driver gives me a recommendation you know what I do he tells me to buy a particularly insulin do you know what I did i short the crap out of it I put everything behind going the other taxi well that's the whole crowd isn't it that's the whole crowd isn't it is that the whole time so I just you just sat there Nick knowledge that you're on what's different let me tell you something when the institutions buy or sell they're not gonna do it with you know a majority is trends will happen without you knowing you will only find out once fifty to eighty fifty to sixty percent of that trend is done you will only know about this here because what are you doing you're listening to the news right you're not gonna know what institutions doing did you know what they're doing for Facebook's no did you know what they're doing for euro USD know what they say you're a USD can't get lower right did it go long now everyone's short the euro USD right and what happened when they're short it went up will happen to the crowd if everyone's short how many sellers can you have exactly it's the sellers dry up all it takes is a couple of buyers to sit there move a doughnut if there's no more sellers agree I remember one thing I want you to think about this right if it's so good and you're selling and everyone else is selling does that someone have to buy when you sell is there someone on the other side so if it's so good that everyone's selling why would anyone be buying what are you gonna do listen the Newsies so you're gonna lose talking listen news 24 hours a day and listen to one argument to another you're gonna listen to news just to try to figure out what everyone's doing admit it you do yeah you listen to this the other seven years I've seen so many times you called me up nation what do you think this guy now oh he listens a lot of news and a lot of junk he's got a lot of free time doesn't he's got a lot of free time by the way he's down to makin he was the one that was yeah okay so you guys understand this one so pick a currency pair knows currency so let's go for a number currency and never both let's do one more currency than one dollar franc I don't wanna Frank oh yeah it's a stop so what so stop so that's a good question well there's a couple of ways you could do it every time the nose-down a Fibonacci level the past Fibonacci level plus a couple of points could be your stock does that make sense so once it gets to sixty one point eight you can move your stop to fifty percent plus a couple points once it gets to this eighty seventy eight point six you could use it at fifty plus sixty one point eight plus a couple of points and trailer that way you guys do that or what you can do is use pivots and every time the pivots go down these major pivots here these triangles use the pivots as a trailing stop so you could use the old Fibonacci values above you in a bearish trade or you could use pivots with a buffer either one the buffer is whatever you want it to be great okay so you could use these Fibonacci's plus a good stop is where if you're wrong you get out of the trade okay so let's think you're betting on and going down there's a level up here you're gonna put and say okay you know what if price comes all the way up here and I go this much negative I want to get out I'd rather take my losses now and run before I lose my shirt that's where you stop this and what you want to do in trading is have a trailing stop so as price goes down your stop keeps on going down down down down does that make sense so eventually you get to a point where it's a free trade where your entry is below your stop is below your entry in the bearish trade this is extension because remember we shorted a here and we actually traded yep figure it this way entries are retracements extensions are where you're gonna take profits okay agreed now did we cover that we cover your stops you good with it okay so now we don't have German Germany no spring Swiss franc your ass wit C dollar dollar suits yeah okay you throw me in the loop okay so now this looks ugly right so let's start here this is a major trend isn't it yep so I'm gonna click on the beginning of the trend to the end and what I do and when all a web is kind of hung around the 50% for a while didn't it yeah came off the 50 didn't quite hit it until here and then it blew past that went down a 60 1.8 didn't it after you got to 60 1.8 let's say we entered at 61 point 8 agree so I'm gonna draw a line here I'm gonna say this is my entry right there agree I'm gonna delete my Fibonacci so now this is my entry going along I'll just call it blue everyone I'll care of that now I need to know exactly what my profit-taking levels are right so before I had clicked from here to here now I'm gonna click reverse I'm gonna click here it would help if I got my Fibonacci retracements back if I click on here to here and now I know my levels right so I could come in I could say okay eighty-eight point six is gonna be one level this is gonna be another level and then this is gonna be another level right there so I could basically come I could delete everything so now I got a clean looking chart where basically this is my first profit-taking level so I'll call this t1 and College yellow my second profit-taking level whoops AJ deleted let's just say it's here Titu and the third one it's here t3 it's a boom this is my entry and my stop since this is a sixty one point eight with just a couple of points below that let's just say it's here and this is my stop hold on everyone okay with that yeah so it looks clean now right so remember you got in here all this hadn't happened pretty simple yeah yes just follow your rules you just follow your rules there's madam just for you rules it's got to get to that 128 don't we get there it doesn't mean anything okay now let's say you're looking at this today well your stop is you could use the old v v v values right which this is the one at penetrate it hasn't got the next one so it's this one plus a couple points your stoppers right there or you can use this pivot low which is a couple of points there so even the pivots are Fibonacci's or whatever levels you have and you use those okay now let's say you're looking at this line right this is where you're looking at today so let's get rid of everything now here's the part is very very tricky with Fibonacci now let's say this is a live charm which it is agree so let's draw a Fibonacci this is a trend right from here to here is a trend degree yeah in theory you could say the bottom is really here from here here is so which one okay let's try both so okay so let let's no no you guys stick with one you can't master one you can never be successful on one if this is not clear you could go to a higher one let's go to a higher one let's see what that looks like how's that look it looks from here to there doesn't it right so then if you start drawing from here to here you could draw from here to here if you go here to here so if you go on this one it gives you even more confusing doesn't it so let's keep the daily let's just map out all the possibilities agree so let's go Fibonacci retracement let's say this is the bottom that's the top agree yes now let's say I'm a 61.8% retracement guy that's one level great so that's one possible entry now I can sit there go from here whoops I'm gonna go from here to here and now my entry for the other one is right there great yeah let's delete everything so here's my two possible entries which one now oh well here's here's the pros and cons let's say goats and say this is my entry right well what if it just comes here and bounces off there and you just missed a trait yes let's say I enter here find two here then my stop has to be both below that which would be right there so I add on more risk is the risk worth it at that point now which one then we did this one in this one right Ron well what about this middle one it's it could be counted too so now we got a nibble take your truck watch one you want one two or three that's Markham this is where people usually hate me when I do Fibonacci presentations can you see why they're like you set us up it looks so good and good and everything and then all of a sudden you show us a charting you like now instead of a simple one entry now you gave me three did I give you three did the charts give you three know no they're not different time frames are still the same time frame nope nope nothing pick one which award you use so this one okay let's learn do you choose that one one two or three second what you'd like the middle random okay hold offense the first one bounces up you just missed it you want that one don't know dude right which one one two or three yep okay sure you don't know okay so let's go for pros and cons there's no right or wrong okay but you can think about this and you could see what type of trader you are so if I enter on the first one right if I say entry or the first one if he came the second or the third one and bounced off that I'll never enter the trade so I missed opportunity completely agree okay seconds in between it really offers nothing so it's useless so you're completely lost okay choose in the middle mix mix is harmful and trading never choose the middle one extreme to the other okay I'm trading a known life it's not like when trading choose either the upper or the lower never in between great so we eliminated one right so now if we enter on the first one entry one if it comes to answer three it bounces off that we don't get into a trade doing dude no so is that good or bad could be bad let's say we in turn three how much risk are we really gonna take on if I say my stop is right here okay and I say my stop is right there agree everyone okay with that agree right now if I say if I enter here on entry three and my stop is there what's my profit level it's good the hundred percents right there right the 88 is probably there right so between here between here in here that's my reward and my risk is that much so let's let's look at this let's let's map it out exactly to a tee and watch us so let's go get my retracement tool let's say that basically this entry 3 was using this one right so I'm going to draw this and I'm gonna sit there and say my worst case scenario is it gets to eighty eight point six agree then it could come to here now I've done this right now watch what I'm gonna do I'm just going to color code these so this is my first target level second target level is this a lot of work everyone okay with that yes now if we do that let's calculate my reward risk ratio so let me just take a snapshot this so I could draw so everyone see that so my reward risk ratio my risk is where from here to there agree yep yes my reward is where my first reward is going to be from here to t1 agree yes so is this a good reward risk ratio yeah so even if it's choosing a higher entry is it still good yeah so now the debate comes reward risk is good for evil one of them right for entry 3 you'll get in entry 1 there's a possibility you wouldn't get in which one would you choose entry 3 guess yeah the other thing is which someone pointed out entry 3 is also this little pivot isn't it yeah matches up doesn't that makes it even higher probability of bounce off there so what's the best answer 3 + 2 3 so now we've mapped out everything this is your trade right I put a water out there agree so let's say I put it over out there right now so watch what's a limit order oh great so there's my order okay now you have a hoarder out there you're gonna look at this every day so what do you need to do when would this order need to be canceled no or you have nyeh to the tray Oh the only time you're gonna enter the trade is when price comes down to here when it breaks his pivot up here it's done isn't it yes it's not gonna go down and it just created a new higher high to a point it shows the trend is going higher isn't this point right here is no longer the high is it no so if it breaks this point right here we need a can so order don't we yes if price goes down we'll enter our trade here if price goes up it goes all the way up there and if you're not looking at the charts guess what you're doing you'll have this order sitting out there for two years you know what do you realize that we you need to when will this trade be invalid when will this order be invalid if it breaks this pivot high right here you'll be invalid right so guess what I'm gonna pull alert there to a point I'll say okay I got alert there now so if price ever gets there is gonna cancel the order completely if price goes down here I'll enter the trade agree yes so I got a corner right yeah yeah yeah what I do now nothing walk away so I'll keep this trade on and let's see what happens next month yeah if I lose it coming out of your pockets each one gets a share okay you okay with that yeah now should you get out of here right here should you get out what if it goes high can it go higher sure so here you could do what you could do is you put allert here and say I could go to preserve mode where I protect my profits we're a tight net stop so you don't necessarily have to get out here you could just protect your problems you see how we make this work now I'm learning most people when they do Fibonacci you will not tell you to put an alert up here most of you people will not look at the 88.6% retracement most people do not even calculate reward risk they're just going nilly willy putting a buy order at fifty percent a sixty to eighty point one and then sitting there praying that he gets to the high and getting out there that's all they're doing do you don't have they don't even use trailing stops here we're moving our stops up so as it goes up up up we're protecting herself and our risk is going down lower and lower and lower great yeah can you do this that's it the people that use it you Mukul Fibonacci's already built in we don't have to calculate it that's already done more indicators are Fibonacci values our indicators are second that you prove to yourself they are you to muku levels are Fibonacci levels too so you don't have to go for and do any of this hmm makes you wonder doesn't it no no no I'm just people that use it you Mook ooh I'm telling them they don't have to do the Fibonacci's because it's very built in the draw you have to draw nothing I could do you only prove yourself that all I'm saying is these Fibonacci very anemic or they what they're a in Incheon MOOC was so we don't have to draw these lovers they were there already well if you think about it what are the indicators that they're the average of the high and the low right high low average is what 50% retracement for what forever trees it could be a red line could be a green line it could be all right you figure it out I'm gonna give you everything I start to think don't you you're young use your damn brain oh you're not use your brain cheese well it's the answers all the time it's like telling me why is Facebook going down I don't understand [Music] you always have to think you see things easier when I saw a chick who I saw everything I'm trading in couple indicators and very easy because of one the next step after you match master Fibonacci is le way right so here's Fibonacci next step back that is Elliot wait after you master le wait then there's each of you it's a three level tier system that's the progress that's the path one went down how's a Fibonacci trader then I moved over the Elliot wave and then once the problem daily wave was that it would never show me how to trade the institution away I took all these classes all over the world they always showed me how to trade their meats Hanalei which is scraps on the table that never showed me the institutional so I was trying to figure out the institutional so I was making money as a Elliott Wave trader but always looking for how to trade the institutional way because you never can figure out because people institutions do it you don't know that's too late when I saw it you muku that's when it all came together I can't count years now that was my progression Wow most of it was not it was not meant to come to the Western world all the books are written in Japanese I'm also into MCOs mainly meant for currencies it was never developed for charting applications outside two currencies so what happened was when I came across a couple years ago there was no indicator the currencies had it but you couldn't see stocks you couldn't see futures nothing so I've developed indicator for each signal then tradestation and ninja so we went down all these charting platforms and we literally developed indicator for everyone so now we've got a global view of hmm cool on any instrument so once that happens now is starting to become more and more popular because now it's available further we even think or swim we got what Tom saw is not when thinkorswim and had the development done for hmm was it wasn't there we pushed it from the inception and thinkorswim and the reason why I like we like thinkorswim is because you don't pay the charting packages all these are the brokerages if you want trade futures with other brokerages you have to pay 50 bucks a hundred bucks a month just for the data feed thinkorswim you don't for the data feed that typically is would think or swim you don't the reason why is more more people trade per user trades more and bigger swim than anyone else where the Commission's off they're over set confrontative they exchange fees so they don't charge you exchange fees normally if you trade the futures you're supposed to be charged exchanges so lastly let's wrap up we'll cover a future a mini S&P 500 futures neuringer over here is trying to predict which way the market gonna go up or down no no what do you think won't take the fibonacci from here oh yeah do we have opinions this is the in mini S&P 500 futures it governs the US stock market okay so let's go to weekly view let's go to weekly okay how's this look look good so let's let's draw it out so nerd there thinks it's all over all its bearish bottom to top I didn't do this diagonal line it's part of the package okay now what I say a trend is still occurring when it pulls back to 38.2 right so did this just pull back to 38.2 and bounce off that yeah so still looks like a major trend isn't it it's not even gone for a major pullback guys so even though most people frantically panicking out there thinking the markets about to crash and all that is this still bullish yes maybe never how about looking at the charts instead making a penny how about this look at that chart what do you think cuz this is a bullish bearish how about you bullish upward down what's up overall it's up right this is a multichart things markets a crash whoa What did he say not like what what what what the media what what what do you think say it out loud what to see a PC gurus challenging markets gonna come down okay one month from now let's see what a market then there's more puts they're talking about options right there's more puts in this enough how do you know people are those puts are for getting in or getting out how do you know what options strategies therefore you don't know so it doesn't matter you can't count the puts and the calls and all the stocks they can't look at the put/call ratio you can't look at the open interest for our options at all it's distorted them people do iron condors is four legs to trade well it's puts right but guess what if you buy or sell it if you sell put right depending on a strategy you actually better anything going off depending on them and if you do debit verticals and credit verticals right you could do opposite you can't listen to people charts tell you everything I mean this chart tells you the long-term view is what bullish the weekly tells you still held a 38.2% retracement right here right and look at that didn't it hit this pivot to right there yeah is it didn't we talk about how strong that is yeah has it violated that no what's the drawing of the sand what's your floor 1279 as a broken below that no has a closed below that no are we still bullish yes what's the daily look like right yeah as a daily giving you a buy signal No so what do you do your weekly is telling you bullish the week the daily is going down what do you do no you sit on the side and you wait until you get a buy confirmation on the daily your weekly is telling you up but there's no signal here you gotta wait for a buy to go up here do you want draw a Fibonacci's here yeah let's draw you some Fibonacci's you want one here there's one right around the sixty one point eight if you chose this pivot that point right there right hey whoa let's choose this one how about this one right around 50% okay so let's choose another one let's choose this one wow look at that thirty-eight this level is that what a bi-level even though the daily isn't it you're a Fibonacci trader what are you doing at that level by think if you chose this pivot you bought if you chose this pivot as a low you bought you chose that a pivot you bought no matter which one of these you chose at the beginning of the trend it still told you this was what a buy so do you have any business going short so you gonna listen to CNBC yes let me guess look you're gonna be the first one down here when CNBC comes to Atlanta they here I know I missed it oh it had so much fun last time they came out I met Jim Cramer it was down here yeah so what do you think you do if you're a Fibonacci trader you're in aren't you see don't you see what I mean all right Tori yeah hello but didn't I just show you ones at that level yeah it's very big 1279 was in you should be by you're 20 points late what do you think I was there you don't do day trading I belong on all of you is it still working listen to me unless let's make this clear okay future products are not meant for day trading what did I say kiss you future products just repeat what I said don't add your own opinion future products are not meant for day trading their front hedgy farmers use corn and all apprehension people that do what gold jewelry stores use gold and silver for hedging therefore a hedging products that I don't know in my entire career neither does my business partner no any future day trader that is successful at all here you want to trade you go for it when you could lose don't come crying to me futures are not meant for day trading gap up and gap down the totally different that's you do gap up trading for stocks and stuff like that you don't do gap ups for futures that's like the deadliest thing to do that's like magic you got 28,000 of let me have it I'm going India you're gonna pay for me to go out and the Florida wide trip you want to go to ease pain yeah worldwide tour he's paying that's like playing gasps you miles let's just give us your money right now gaps are the worst deadliest thing in futures let's put this way you could be up twenty eight thousand dollars in the future Trey next morning you wake up not a single thing you could do and now you down twelve thousand dollars what do you do what do you do you cry that's what you do here and let me let me read this I mean just wrap up now

Channel: Manesh Patel

Views: 1,248,581

Rating: 4.7892046 out of 5

Keywords: Fibonacci, reward/risk, money management, trading, day-trading, day trading, daytrading, currency, forex, stocks, options, stock, strategy, bitcoin, cryptocurrency

Id: QwJ-i5xJz8s

Length: 60min 28sec (3628 seconds)

Published: Tue Jun 12 2012