How to Trade With Fibonacci Retracement | (Part 1)

[Music] okay well without me in a building you filming um you know today's video was about Fibonacci retracements I use Fibonacci a lot in my trading you know obviously you know support in systems which I classifies key levels key areas trend lines you know moving averages I don't wanna use indicators or fancy software I hate all that stuff because they're all fake they don't work the only indicator uses a moving average and of course you know Fibonacci retracement in the Fibonacci extension tool so you know some people don't really use Fibonacci it works for me it works for the majority of people I know and who are you know great traders so I'm gonna break it down for you in this video before I get started if you like my channel or you want to see more content be notified when I release videos like these because I release videos every single day and I have been for the last you know we can have two weeks subscribe below you know go down go down right now hit subscribe button so you can be notified when I release a video tomorrow or the next day because I'm teaching people how to trade the market on a surface level you know obviously I put online course at www.att.com/biz you know FaceTime call zoom session Skype sessions text messages you know analysis you know all that stuff but on a free level my youtube subscribe below and you will be notified so the Fibonacci retracement tool the Fibonacci obviously like when I have so much hearts in a few minutes is simply a tool that helps you figure out where Trey Smith from reversals we know if a trend is going up and it comes back down this reversal over tradesmen is the market will never go straight up or straight down it'll come up come down a little bit oh oh dial it bit or if is going down down a lot up a little bit down a lot up a little bit those a little bit of ups or a little bit of downs the pendulum is up in a downtrend is called a replacement and the Fibonacci retracement tools helps us figure out with tray swings from reversals or we can get another entry and you know buy again or sell again and have an actual take profit because without the Fibonacci tool our take profit is usually you know the next key level the next support the next resistance the next daily area but the Fibonacci has its own extension which is where the extension comes into play its own extension where it tells you a number based on the ratios when I get into what Fibonacci really is it tells you where to place your take profit and more times than that price with its that area you know overall get to my chart in the next 30 seconds but I got to give you a breakdown little Fibonacci really is because like I mean is boring you don't really need to know it's already factored in in the charts but just for you to know in your own brain online Fibonacci was created by a guy named Leonardo Fibonacci and he realized when you add up a series of numbers basically a ratio it turned into a sequence so 0 plus 1 is 1 1 plus 1 is 2 1 plus 2 is 3 you know 2 plus 3 is 5 2 + 5 8 and so on and so forth you add the first two numbers and get another number what he did is he divided those numbers like you know the 5 and the 8 and when you divide the numbers that's next to each other you get 60 1.8 every single time we you know spaced one out and do like 5 8 13 so 5 and 13 skip to 8 you get 38.2 margin under stuff matters it has it all factored than the chart this is the boring stuff but so you haven't your I just know what the Bonacci is where it come from he used it to describe proportionate things in the universe so in his own life but us as traders have taken that and implemented it with the charts and what's its actual to does it help you figure out ok racialize how far is price gonna drop back down before sunnah or you know go back up a little bit before it can go crashing down so enough all the boring stuff let me just place on a chart because really really easy it sounds difficult and it sounds like he knows a lot it's really not the easiest thing in the world so let me go much parsley quick all right so we have our charts here boom so we have like I said I'm gonna keep my resistance in my support levels here like I actually do not actually trade um so if I click play here I'm in a bar-replay mode so I can give you guys examples what you should know is Fibonacci is not to be traded by itself it's meant to be choreographed and confluence with support resistance the trend lines and major market patterns all that you can't have it by itself because you're gonna miss an important element basically a resistance of support right here we have it right near resistant so if I can click play see price Claire's day dropping down cool consuming a little bit this is a Fibonacci retracement tool it helps us figure out what treatments this is why you need your key levels of support and resistance on because if we didn't have this resistance on we would have thought this would have been a replacement from you know an uptrend but I like I said have been treated for five years now so I know in price it gets to a certain level and it reverses that's a natural versal it's not a retreat it's not price I'm not gonna retrace off of a key level if I'm saying so this is a reversal so I'm looking for a downtrend you know Fibonacci retracement tool so I'm looking for price to go up a little bit and then drop down the hell so if I click play you can watch it clear as day still going down still going down boom finally going okay cool this is a significant move that allows us to place the Fibonacci tools so what it is like I said and a damn string price little all the way down and then it comes up a little bit when price starts coming up a little bit that is when you draw your Fibonacci retracement tool on we grab from here Fibonacci retracement and we click it from the top all the way to the bottom so for a downtrend you click it and use drag it from the top the swing high to the bottom the swing low so a hundred should always be at the top and zero should always get the bottom in a downtrend and an uptrend it's the opposite I'll give you an example of that too so we have our levels here thirty eight point two fifty sixty one point eight in seventy twenty six price should reverse off one of these levels I'm not a traitor who just tells you try to reverse off thirty eight went to or fifty or sixty one point eight because chances are like if you think that you may just blindly sell or buy when it gets to the thirty point two and the price goes up a little bit to the sixty one point eight and then it goes down and then it goes up and you just lost money because you weren't patient enough so I like to watch it and I get a significant move and a significant like overbearing or a candle I was going to the 15-minute time frame with a five-minute time from an enter so for example we have it here and before I can get into price reversing what it really does you can copy exactly what I have here I have this zero at thirty eight point two sixty one point eight one negative 27 extension they go six one point eight 50 70 point six it's all I have here you can copy the prices the levels like everything I have here just put it on you're comin atcha as well um before I get before get to what it should do these levels below zero our take profit every single time so I said if you watch my videos I creating levels so I take properties you need the next resistance or the next support but using Fibonacci it's a way to get another take profit before it gets to that support because it may be in the middle of no man's I like this like my neck support is way down here as opposed to waiting that long I could have a Fibonacci retracement and get my money here or here because price may come right here and then go up and then go down you wanna mean I can get into the tool too if we cut at the same time and I can get into a couple different trades at the same time so I'm saying so the prices coming up right now you look at it right clears that we click play we see what want to do and this is what I mean and if you were if you were one of those traders who think this is gonna reverse with 38.2 every single time guess what you lost money right here you see price came down to gave you a signal but no you have to wait for an overbearing of a candle boom boom that's you boom okay this is telling us clearance day hey you certainly got in this is what I mean why you can just look at it as 38.2 or 50 because guess what you'd have gotten right here for sale you lost all your money your phone so no so now I can look at it click play some more look at that just get on some 15-minute timeframe click play look for my entries well on to a do I see you starting to consolidate a little bit and draw a box from here to here I'm still just wait for price to break this box honestly or start creating lower highs I see a lower high right there this high is or than that high boom like I said I probably entered right here I just took play and play and play but once I see a lower high and then break up such your intro so sore position I would have entered around right here stop-loss could go above the box for a sniper entry a pilot put it right here but let me put it above the box just for right now um go back to the one hour two hour time frame now take property way down here 27 extension negative 27 extension drag it over this is how you trade the Fibonacci extension all it does is it gives you a retracement tool to help continue your trade and give you a take property that's called a Fibonacci extension this is our extension levels so you have one a triple Ward ratio right now if I'm saying so we click play we watch parts to it it does and where does it go in a little bit you can see it look at it look at what it's doing going right to the mega 27 extension right to it right to it usually does that more times or not nope right to it boom right there the minute it does that got the trade get out the trade boom you got your money you got out the trade you can delete the Fibonacci retracement along all of that but before I show you that here is a sixty one point eight extension this is only if price goes past a negative 27 extension it can do that like I said you don't got to know these numbers in these ratios you got to know how it functions how it functions is when price retraces off one of these levels it goes down to the twenty seven or the sixty one point eight nine or dealing time sometimes it'll get to zero and then stop but that's like that doesn't happen as much as much as it goes to the extension levels but at that point we can delete it now at this point we can look at it and see okay what if I want to do the surprise when they go all the way back down here or stop at this mid level we wait to see what wants to do price could easily retrace or come back up or come back down it's a constant game like the Fibonacci retracement should be constantly added if you see it fit don't force it on did you see it fit great I see price coming up and retracing now so now where's the highest point price went to before going back down here so again swing high swing low well now waiting for it to return off of one of these levels 38.2 56 one point eight and seventy point stakes remember remember price does this all the time a/b c/d that's how Fibonacci is really explained so our a would be our swing high let me just get this right here a right here B right here where the zero was see we're reversed off of and D we've been you know our actual extension our retracement our take proper level now we're past that right now so now since this is our new Fibonacci a is here B is here C is wherever it reverses off of in D would be the extension levels just for you just so you guys can know that and we just watch prices wait to see what it does I'm gonna make this a little bit faster cuz I won't make this video too long click Play just look at it just look at it just look at it just look at it just look at it boom just look at it I ain't gonna trend line right here at counter trend line just to help with some confluence action and whenever price breaks just running I could actually look into get into scale in plague boom boom boom boom boom whenever price is regulator like I said I'm doing it really fast to show you guys but when price is breaking this trend line or when it's about to light you can see the lower highs already if I can just delete this retracement really quick you can see price came down came up couldn't break and go past a moving average start to create lower highs my inch would have been right here short position right here boom let me get the actual Fibonacci actually back up boom boom boom okay cool right back up stop my take profit would be way down here because it's so close to the support level I know it's not gonna get to here and then go back up so it's so close right now so stop us to either be if you got a crazy entry which I advise to do in price is reversing off of a retracement go down to the five or 15 minute if you did could easily easily entered right here and have a stop loss right here at the tightest you know the tightest include the most sniper over entry ever not have been a 1 to 26 verse reward ratio this is why I preach sniper entries and I have to make a video on getting really good precise increase because that's the biggest thing that will you know maximize the rewards while minimizing the risk but if you did in you know scale in 40 min timeframe then your stop loss would have to be unfortunately way up here which brings it to the 1 to 4 vs. or wherever as opposed to 126 so sniper entries is where it's at and I have to make a video on that because that is how you'll maximize you know your rewards you know it's a big difference when having a 1 to 26 versus reward ratio than one before you found Sam so right here boom now we just watch it go either all the way down all the way up now the reason you have two different extensions and take profit levels it's because you probably got in on this sell way down here this one right here clear as day is where our Fibonacci starting from we probably sold it originally for our first trade this is our scale in say we add a second or third position now our first a profit could be here the 27 extension our second and third for this you know scale and can easily be the six one point eight depends on you have it I'm just giving you like the overall knowledge of how they've been actually usually worked so we look at this clearance day we see that wants to do prices I'm making it fast to Christ is all and all this little stuff presses to do and we just bring this over but you see it's trying to drop you see a drop of furrow now it's right to the area boom right there trade is over you're done this is why when you get in a trade fall back because you couldn't easily you couldn't easily saw this you know doing all this consolidation like you know what I'm gonna take the money and get out and you miss the entire drop once you're in a trade relax and go do it when a new workout B which a girl built your man don't really focus too much on the actual trade just let it play out have your style someplace have it a proper place and let it play out okay I found an uptrend someplace so I'll click play we can see what I wants to do we easily get from there okay cool let me just start from here so uptrend where is the lowest point you went to before going up mind you it's the opposite now so we dropped from the bottom all the way to the top and now prior to the reverse of the thirty point two fifty or sixty one point eight our extension is already placed up here this is our take profit this level right here is our take profit so if we click play you can see price clears day so you wants to do I'm not gonna talk about inches right now I'm just gonna make a point price to reversal to thirty eight point two 56 on point eight or seventeen point six when it does that you scale name I'm to play it's literally made it faster boom you can see clear as day prices bouncing up to fifty we click play form prices heading up you're interested been on a fifty that surprised us price gets exactly to the 27 extension boom clear as day clockwork all the time and that is how you use the Fibonacci retracement tool you can watch that video over and over and over again and grainy in your head but it's really simple when price is shooting up and he's starting to come down just a little bit place it from the bottom to the top and watch it reverse off with a thirty eight point to the fifty to sixty one point eight or the seventeen point six once you see it slowly reversing scaled down to the minute order 15-minute enter and have your take profit at the negative 27 extension or the negative 6 1.8 Sam throws a Down trend we see price shooting all the way down don't have it yet don't even try to enter just wait for it to retrace a little bit and enter on the retracement on the pullback so like I said if you got in at the top before it shot down that is perfect but if you just have you open your charts and price is already shooting down don't have formal and try to have reading and try to get in the trade you don't have none of that to wait for it to retrace good module price keep this in your mind price always has to retrace no matter what price always has to retrace keep that in your brain price will never just shoot all the way down and help it hazarded tracers always another trade for another day and you have to be really understanding of the Japanese candlesticks and the major market patterns you never know what a doji is a hammer or a shooting star evening star a morning star you don't know all of that because when you see those type of patterns print on a seventy eight point six or sixty one point eight or any of the retracement levels that is telling you to get in technical analysis makes up damnum like the majority to market like 90% of the market like use it all lose a trend lines use supporting resistance use the Bonacci use a moving average if you want to use an indicator that's the only indicator use and know the Japanese candlestick patterns those are only five things you need to really understand technical analysis and how to trade using technical comment below on what video you want to see next somebody a couple people commented that they want to see me talk about the vernacular tradesmen because they don't really understand it it may seem really complex but it's really really really easy especially when they do all the math for you so I hope that helps you guys like I said if you have any questions email me at Chris at the swag Academy calm and if you want to know more about my website on my online training and access to my course like I said in the beginning of the video its www slight academy.com like I said that one-on-one mentorship I train people I teach every single day I give my analysis I break the markets now pretty I might give them a trading plan I have a social timeline where it's like Facebook and Twitter essentially where you can you know post your charts message other members and friend requests all that stuff so dang a highlight you guys are prefixes watching the video I'll make another video too just let me know what you want to see next and I would gladly gladly gladly make those videos so how about you guys as always okay

Channel: Chris "Swaggy C" Williams

Views: 601,744

Keywords: fibonacci, fibonacci retracement, fibonacci extension, fibonacci tool, how to use fibonacci, how to use fibonacci in trading, how to use Fibonacci in forex, fibonacci for beginners, forex trading, forex trader, forex traders, forex trading for starters, forex trading for beginners, how to trade forex, is forex easy, learning how to trade forex, forex lessons, learning forex, forex account size, forex flipping account, how to flip a forex account, forex life

Id: 0z39pJSwy2o

Length: 17min 48sec (1068 seconds)

Published: Fri Apr 03 2020