ALL ABOUT FIBONACCI
Updated
Fibonacci retracement levels serve as indispensable tools for evaluating retracement potential and identifying targets
This analytical scheme is most effective in market trends. In a market with an upward trend, the traders' goal is to determine the correction potential and strategically identify entry points for long positions. Conversely, in a downtrend, the focus shifts to evaluating correction potentials and tactically identifying entry points for short positions.
By utilizing Fibonacci levels with precision and insight, traders can navigate market dynamics with greater clarity and strategic foresight.
Operating rules:
●Identify the trend and work according to it
●To determine the correction potential for uptrend use the grid below up.
●To determine the correction potential for downtrend use a top-down grid.
●Find Swing High and Swing Low for correct using the tool.
1. For an uptrend, the Fibonacci grid extends from HL to HH.
After breaking the downtrend from LL to HH.
2. For a downtrend, the Fibonacci grid extends from LH to LL.
After breaking the uptrend from HH to LL.
Settings for corrective movements:
Unlike the standard values, this is a modified version with the highest mathematical expectation of price reversal.
To open a position, we are always interested in the price behavior above or below the 0.5 value.
The smart money will always look to buy at a discount and sell at a premium.
Therefore, to open a short position we always look at the price above 0.5, which is considered a premium. And to open long positions, we look at the behavior of prices below 0.5, which is considered discount prices.
The OTE zone is an extended grid that is always in the premium market when you are looking for a short position, or in the discount market when you are looking for a long position.
These levels act as an area for the optimal entry point.
Correction of the upward impulse.
Fibonacci lines themselves do not act as support or resistance levels. It is not relevant to trade only on the basis of them. The price turns from specific areas that are displayed on the chart.
Correction of the upward impulse.
The price may go beyond OTE, this does not negate the relevance of the setup, HL is still being formed in the discount market.
Correction of the upward impulse.
Not in all cases, the price corrects to the OTE zone: when it reaches the support zone at the 50% level (equilibrium) or slightly below it, a reversal may already begin, because this moment already implies the start of buying or selling with smart money.
Downward impulse correction.
Make it a rule to open positions only after a correction in the premium or discount market, and skip other opportunities.
Take profit according to Fibonacci
In order to determine where you will take profits, you can use negative values.
Settings for setting takes:
-0.27 – take 1
-0.62 – take 2
-1 – take 3 or closing the position
-1.5 / -2 – take 4
Fibonacci take
Negative Fibonacci values can be used effectively on every trade, but try to prioritize the chart to identify more precise zones where price may reverse.
This analytical scheme is most effective in market trends. In a market with an upward trend, the traders' goal is to determine the correction potential and strategically identify entry points for long positions. Conversely, in a downtrend, the focus shifts to evaluating correction potentials and tactically identifying entry points for short positions.
By utilizing Fibonacci levels with precision and insight, traders can navigate market dynamics with greater clarity and strategic foresight.
Operating rules:
●Identify the trend and work according to it
●To determine the correction potential for uptrend use the grid below up.
●To determine the correction potential for downtrend use a top-down grid.
●Find Swing High and Swing Low for correct using the tool.
1. For an uptrend, the Fibonacci grid extends from HL to HH.
After breaking the downtrend from LL to HH.
2. For a downtrend, the Fibonacci grid extends from LH to LL.
After breaking the uptrend from HH to LL.
Settings for corrective movements:
0.5 - fair price (equilibrium).
0.62; 0.705; 0.79 - OTE zone (optimal entry into a deal).
Unlike the standard values, this is a modified version with the highest mathematical expectation of price reversal.
To open a position, we are always interested in the price behavior above or below the 0.5 value.
The smart money will always look to buy at a discount and sell at a premium.
Therefore, to open a short position we always look at the price above 0.5, which is considered a premium. And to open long positions, we look at the behavior of prices below 0.5, which is considered discount prices.
The OTE zone is an extended grid that is always in the premium market when you are looking for a short position, or in the discount market when you are looking for a long position.
These levels act as an area for the optimal entry point.
Correction of the upward impulse.
Fibonacci lines themselves do not act as support or resistance levels. It is not relevant to trade only on the basis of them. The price turns from specific areas that are displayed on the chart.
Correction of the upward impulse.
The price may go beyond OTE, this does not negate the relevance of the setup, HL is still being formed in the discount market.
Correction of the upward impulse.
Not in all cases, the price corrects to the OTE zone: when it reaches the support zone at the 50% level (equilibrium) or slightly below it, a reversal may already begin, because this moment already implies the start of buying or selling with smart money.
Downward impulse correction.
Make it a rule to open positions only after a correction in the premium or discount market, and skip other opportunities.
Take profit according to Fibonacci
In order to determine where you will take profits, you can use negative values.
Settings for setting takes:
-0.27 – take 1
-0.62 – take 2
-1 – take 3 or closing the position
-1.5 / -2 – take 4
Fibonacci take
Negative Fibonacci values can be used effectively on every trade, but try to prioritize the chart to identify more precise zones where price may reverse.
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A fine, regular exampleTrade active
Return to FVG/OTE, followed by a trending downward movementTrade active
Approaching the zone OTE, where there is an untraded OB and a small FVGTrade active
more detailed analysis:Trade active
An illustrative demonstration of an optimal entry point employing Fibonacci analysis in conjunction with support zone identification. This further strengthens the conviction that the price is poised for a reversal within this designated range.Trade active
The most important thing in trading is stamina. It is necessary to find and wait only for those sets in which you are sure!Trade active
There are such moments, I would personally skip such a deal, there is no certainty, especially when we do not fill the FVGTrade active
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Another perfect exampleRemember that any trade depends on context, there is no point in watching a short position if it is not formed from a zone of interest
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