Fibonacci Retracement ExplainedWhat Are Fibonacci Retracement Levels?
In simple terms, Fibonacci Retracement Levels are horizontal lines on a chart that represent price levels. These price levels help identify where support or resistance may likely occur on a chart.
Each retracement level corresponds to a specific percentage, indicating how much of a pullback has taken place from a previous high or low. These percentages are derived from the Fibonacci sequence and include 23.6%, 38.2%, 61.8%, and 78.6%. Although not an official Fibonacci ratio, the 50% level is also commonly used.
This indicator is useful because it can be drawn between a high and a low price point, creating levels that indicate potential retracement areas between those two prices.
The basic Fibonacci Retracement amongst many trading platforms would normally look like this:
While this is okay, I would recommend changing the settings to my suggested format to improve clarity and comprehension. The revised version would look like this:
To copy this, the revised Fibonacci Retracement Settings are bellow:
By doing this, it shows you the “Golden Zone.” This spot is considered one of the most important areas because price often pulls back into this zone right before “extending” in a bullish pattern.
>>>>>NERDY INFO AHEAD<<<<<
Calculating Fibonacci Retracement Levels
The origin of the Fibonacci numbers is fascinating. They are based on something called the Golden Ratio.
This is a sequence of numbers starting with zero and one. Then, keep adding the prior two numbers to get the third number. This will eventually produce a number string looking like this:
• 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987...with the string continuing indefinitely.
Fibonacci retracement levels are derived from the Fibonacci number sequence. As the sequence progresses, dividing one number by the next number yields 0.618, or 61.8% (233 divided by 377 gives you 0.618037.
Divide a number by the second number to its right; the result is 0.382 or 38.2% (233 divided by 610 gives you 0.381967.
All these ratios, apart from 50% (which is not officially part of the Fibonacci sequence), are calculated based on relationships within this number sequence.
The golden ratio can be found in various places in nature as well. This includes spiral patterns of seashells (like nautilus shells), the arrangement of leaves on a plant stem, the petals of certain flowers, and the structure of pinecones; it's also often observed in art and architecture, such as in the proportions of the Mona Lisa and the Parthenon, where artists intentionally incorporated it for aesthetic appeal.
Now, as you can tell, the Fibonacci isn’t just some lines and numbers someone made up. It’s in everything you encounter. It’s on charts. It’s in nature. It’s in geometry. It’s even in HUMAN DNA.
Fibonacci Retracements vs. Fibonacci Extensions
Remember when I said, “price often pulls back into this zone right before extending in a bullish pattern.” ???
That’s because Fibonacci Retracement, sometimes confused with Fibonacci Extension, is the act of price level pulling back to the Golden Zone. The Fibonacci Extension is when price level continues to move in a bullish pattern after pulling back to the Golden Zone.
For example, if a stock goes from $10 to $20, then back to $13. The move from $20 to $13 is the retracement. If the price starts rallying again and goes to $30, that is the extension.
Limitations of Using Fibonacci Retracement Levels
While the retracement levels suggest potential areas for support or resistance, there’s no guarantee that the price will reverse to these levels. This is why traders often look for additional confirmation signals such as price action and patterns. A double bottom in this Golden Zone coupled with an RSI divergence is a very good indication the price will move after entering the Golden Zone.
!!!Fun Fact!!!
Fibonacci retracement levels were named after Italian mathematician Leonardo Pisano Bigollo, famously known as Leonardo Fibonacci. However, Fibonacci did not create the Fibonacci sequence. Instead, Fibonacci introduced these numbers to western Europe after learning about them from Indian merchants. Some scholars suggest Fibonacci retracement levels were formulated in ancient India between 700 BCE and 100 AD, while others estimate between 480-410 BCE.2
Cheers everyone!!! Happy Trading 😊
Arcs, Circles And Spirals
Cycles of Progression The Magic of Fibonacci Numbers and 144
The connection between Gann and the number 144 is often associated with the work of W.D. Gann, a legendary trader and market analyst who developed various techniques and methods for trading in financial markets, particularly stocks and commodities. Gann's trading theories are often regarded as mysterious and esoteric due to their reliance on geometric patterns, numerology, and astrology.
In Gann's work, the number 144 holds significance within his theories of market cycles and time analysis. He believed that markets move in predictable cycles and that certain numerical relationships govern these cycles. One of the key concepts in Gann's trading methodology is the idea of "Gann squares" or "Gann angles," which involve dividing price and time into proportional units.
In Gann's system, 144 is considered a significant number because it represents both a square number (12 squared) and a Fibonacci number (the 12th number in the Fibonacci sequence). Gann believed that 144 was a key factor in understanding market movements and forecasting future price levels.
Some traders and analysts who follow Gann's methods use the number 144 as a reference point for calculating price and time targets, drawing angles, and identifying potential turning points in the markets.
However, it's important to note that Gann's techniques are highly subjective and interpretive, and there is considerable debate among traders and analysts about their effectiveness and validity. While some traders swear by Gann's methods and believe in their predictive power, others are more skeptical and view them as pseudoscience.
Overall, the connection between Gann and the number 144 is rooted in his broader trading philosophy, which incorporates numerology, geometry, and cycles into the analysis of financial markets.
Fib Circles for LifeThis is my first educational post.
This is not long or short.
This is just fib circles.
This tool is great for non-linear support and resistance.
you can also draw horizontal lines at the top of each circle to make your traditional fib extensions and retracements.
these can be used on any timeframe just like your standard linear fib ext/ret
The biggest rule of thumb is to draw this shape on a 45 degree angle.
you can check angles with the info line if a swing low to high in any area of the pa looks closed to 45 degrees.
Fib circles are magic. and colorful. and excellent for logarithmic chart.
try for yourself!
Bitcoin: All Fibonacci Schematics-This concept overall is called Fibonacci Clustering , which is laying over many different Fib Schematics on each-other...
-I have combined 7 of my greatest Bitcoin Schematics into this one complete idea.
-These Fibonacci Clustered charts have been battle tested for months. I have linked the original ideas down below to show how I first created these (by myself).
- The first box is a monthly timeframe with the longest fib circles from each halving , so there are two circles .
--VERY IMPORTANT--
THE FIBONACCI EXTENSIONS ON #1 ARE HIGHLIGHTED AS WHITE HORIZONTAL LINES . WE FRONTAN 70K AND RETREATED BACK TO 15K . GIVEN THIS MONTHLY PATTERN OF A FRONTRUN AND RETURN TO THE MEAN WE CAN EXPECT TO FULLY TAKE 70K AND THEN SOME BASED SOLEY ON THE FRONTRUNNING OF 70K....
-There is also the longest/earliest Fibonacci Extension in the 1st box. This is why it is a Monthly.
-The second and third box are the 2 most prominent weekly schematics for Bitcoin . They are separate boxes but work together simultaneously.
-Since they are created after #1, it makes sense to make them weeklies. But if I were to place them all into Monthly timeframes or visa versa, it would work either way ...
If you click on "The Bitcoin Matrix" linked below, you'll notice that the Spikes in this idea are from #1 #2 and #3 in that one...
careful, smart place to take bull profits/wake hedgey the bearcircle made from june-nov bottom has acted as strong support and resistance. we're there now. spiral made from same bottom has also been stronk - it's started deviating from circle so resistance is around 28.5 here, maybe a wick? or could just be following the circle
it could always break thru - trendlines are made to be broken and it's been such a strong move off the 200W MA aka bull market support band - and even if it rejects it doesn't spell doom necessarily, as long as that support holds. it's just the range as it's curling around. could also flirt at the top while alts have some fun.
be safe, be kind
A DANGEROUS, BASELESS CONSPIRACY THEORYother angles turned out to be noise, cleaned this up to the ELITE angles
"sine" of 45, 60, and 90 are what matter here (not sure how far we bounce off this 90 tho, i'm still macro bearish).
also not sure what to do when the angle exceeds 90 to a new quadrant, maybe that's when you make a new trend, from the top back to the low
(dotted spiral calling time resistance is the same as original, just visually fit)
be safe
bitcoin has no fib circle support after the 16th febas titled the bitcoin chart has no fib circle support after the 16th feb
since the first range after the impulse the fib circles have acted as support and resistance ranging the price.
the most recent drop found support on the circle around 21500.
the immediate (today) circle support and resistance zones are 19k and 24k.
after the 16th feb there is no circle support below and the door to 12k is wide open, i would expect decent movements soon.
sine spiralsjust something i was playing with, salt as usual, idk if it means anything
also dunno if these can be officially considered sine bc not a circle but same principle?
started with several angles to see how it would play out...when it bounced off the 60º (after wicking to 50 and using 45 as support) i got excited
no idea as to magnitude of bounce...and it could break of course. not financial advice. bearflag/lower high/wick slightly above 25.2 would be max pain probably, rek overconfident beras and re-rek overconfident bulls (is there anything worse than the feeling of being re-rekt by false relief after false confidence?)
but a lot of bull confluence here. 90 degree trendline, 2.236 gartley tp completion, pricetime fibs...too many to list. so at least a good place for beras to tp
another snack for my bear bias, with grains of saltspiral (bottom of correction back to top it started from) called top of ftx dump too (along with other things that called ftx dump tho). chart scaled vanilla 100:1
noticing this 45 degree line (relative to correction angle aka trend i used to make the spirals...tilt your head then add 45 degrees) was pivotal before...is it the cliff?
if it bounces here i keep seeing a wick to like 25.4-25.6. 24950 would be top without wick
i think when this breaks all hell will break loose. i gotta lotta bear signs here, too many to count, but in the bull column we have the giant cypher first tp is 30k. so idk, maybe down then up there. or maybe all hell will continue to break loose upwards, who knows. in the immortal words of bitboy: "this market...is volatile"
also who knows how long alts gonna alt while bitty goes full psychopath flirting with the top here
be safe all (talking to myself here too)
LINKUSDT is testing the support right nowLINKUSDT is testing a key level at the $9.1 area, where the market has previously encountered resistance.
This level is important because it has acted as a significant point of resistance in the past, and traders will be closely watching the price action to see if the level is broken. If the price of LINKUSDT is able to break through this key level and establish new support, this could signal a potential bullish trend.
To apply Plancton's Rules in this scenario, traders should wait for the new liquidity and a new breakout to be confirmed before taking a long position. This means waiting for the price to break through the key resistance level and establish new support, which can provide more reliable signals for traders.
So, According to Plancton's strategy , we can set a nice order
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Keep in mind.
🟣 Purple structure -> Monthly structure.
🔴 Red structure -> Weekly structure.
🔵 Blue structure -> Daily structure.
🟡 Yellow structure -> 4h structure.
⚫️ black structure -> <= 1h structure.
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Follow the Shrimp 🦐
Bitcoin long term outlookFirst outlook on previous analysis turned out to be wrong, but the overall idea is very much valid: BTC is now hanging around supply area/886 retracement level and losing momentum, RSI showing heavy divergence.
I wouldnt't expect prices to go balistic in 2023 with recession coming and goverments doing all kinds of crazy stuff.
This could very well be the top of the "bull trap", "fake out" or however you wanna call it.
In case we break 25k, 30k would be pretty much guaranteed, but i still excpect a sub 10k Btc within the year.
Remember the market will always gear towards the maximum amount of loss for the max amount of people, I would argue that a sub 10k BTC would be almost a sure thing if we get to 30k as the top of the fake out, just cause it would be such a loss for most people.
Always working level by level and taking action based on what the market tells me and not my feelisngs.
I would only enetertain the possibility of the bottom having been 15k if we break above 30k, until then this is the plan.
FORECAST for 2023 is finally set PROJECTION 2023 low june 18 2022 forecast called for drop see dec 2021 projection a Panic low due oct 4th to the 20th focus on the 10th target was 3510/3490 . I also gave you the aug turn see august 2022 forecast peak and panic .We have now ended the last bull phase within the fractals and in spiral in time as well . We should see a break down and it should be rather sharp by APRIL 2/9 we should be near the oct low with a nice but muted rally into may 10th and then the last LEG down into june 18th targets are from 3170 to 2987 . then a year end rally into sept 2 . 2023 after this date we will decline back into mid oct to form a long term base best of trades WAVETIMER
Bitcoin PA and Fib Circles#Bitcoin Weekly & 618 Fib circles
One Thing that tells me things have changed is the fact that PA is climbing UP a 618 circle.
1 & 2 were rejection, 3 was neutral & 4 is support
NOTE the Arrow on 4.236 ( usual rejection ), when FTX went down & Fed put in 4th 75 point Rate hike- the perfect storm for a wash out.
For Me, Fib Circles are more important that many think and here we see a progress from Stiff rejection on 1.618, softer on 2.618 - 3 is Near Neutral, signalling that the Ebb has turned and 4 is not support
Which lead me to think that 5.618 could be very interesting BUT may not be strong support. In fact, I think we may see rejection again due to "World" Fundamentals..
Tghe 6.618, however, in the beginning of 2024 could prove to be very strong Support.
Only time will tell
Ceci N'est Pas Un Bitcoinanother one for the resistances wing of the future of finance gallery
could dump anytime, i think by the 20th, maybe tomorrow along with a dxy bounce from the debt ceiling soiree
trying to learn timing as a hedge against volatility and hunting
(circle = radius is 2021 tops; spiral = original radius is june 2022 triple bottom. visually fit)
simple?this is why i'm macro bull *reminder to pinch/squeeze scales to snap shapes back into place, shoutout to my fav tradingview glitch*
i'd posted an idea like this before when i was just a baby, monthly spiral made from 21 tops then visually fit, but i jumped the gun and didn't consider diff orientations, or fit to wicks...so i tried to be more careful here. could also just be confirming my bias lol which is of course the criticism everyone makes with geo / trendlines whatever.
but i also wanted to show how the spirals (all made from the 2021 top wicks on their respective timeframes. backwards - november to may. dashed = counterclockwise; solid = clockwise. then visually fit to prior tops/bottoms) look different depending on timeframe, so you shouldn't take them as gospel. also, scale changes them drastically (even when you lock the scale like a good lil degen). but an idea i was toying with is that maybe they call different supports/resistances...like...the weekly spiral calls the early 2022 support. idk, there are so many ways to draw them, and they're just a tool like everything else, which is why confluence with things like fibs and price action is important.
i love seeing the symmetry and the harmony, legit fascinated by this stuff en route to cracking the code
<3
stay safe
reminder looking at 18.5 for retest, then macro bull
eng.teancum.es
pitchforkcircles are made from trend, just to make sure perpendicular bisector is correct to draw the pitchfork. regular pitchfork. then did octaves (as in 1/8...0.125, 0.25, 0.375, 0.5 etc) which michael s jenkins says is key to everything, probably has something to do with music and harmonics idk. pitchfork looks kinda like musical staff no? market in the key of b sharp HEHEHEHE #don'tmindme
original pitchfork btw
i'm macro bull but micro bear here, maybe down to 17.5ish idk. be safe everyone
scaredidk
2 diff spirals. one made from 2021 tops, and the other made from this summer's pamp. trendline is just trendline, kinda wonky as trendlines are
but it did break out of the triangle i talked about a couple posts ago, where the timeprice fib called reversal at 1.414, but that was this same 2021 tops spiral, bestfit vs wicks
maybe it's the ptsd, but i'm scared here
some other double bottom pricetime fib confluence too, 1.732 but that's super local (december), and 1.886 (more longterm local aka november). i see 1.732 a lot (square root of 3)
not saying it's a good short, just saying i wouldn't go long til break and retest
obviously resistances break, just trying to show that are many here
heyidk, playing with lots of things here (spiral from bottoms visually fit; vertical spiral from circle on bottoms; circle from trend left where it is; same circle from trend visually fit to .628 (2pi/10) as resistance - with 1 and 1.128 forming support)
i think the most important thing to keep in perspective if you're sus of this kinda stuff is nothing is random, every shape is based on prior PA. bottoms, trends. there is nothing new under the sun. it's just harmonics expressed geometrically. it's just like using fibs. suspend ur disbelief, it's a map of psychology
confluence, recursion, harmony
ur mum
welcome ideas on how far we will retrace here, good show bullas
just to remind myself i did the spiral from the 1.128 bottoms circle bc that's what bitty respected on the way down. oh also looken at a bear bat harmonic, also my pricetime fibs, which i'm sorta just beginning to play with, have a lotta confluence tomorrow afternoon reversal. NFA especially on that one
first new michael s jenkins vid in 3 years, gonna be good 2023! www.youtube.com
:pray:
ROKU Reaching an Inflection PointI recently started looking at Fibonacci arcs and circles. I see them as something similar to support and resistance lines. Charts have an uncanny way of touching support and resistance lines. I've drawn arrows where the chart touched or came very close to touching the two circles I drew.
I noticed that ROKU is very close to reaching an inflection point where the circles intersect around January 30th. The lower circle also intersects with a support level of 26.64 around March 7th. I've labeled this the Inflection Area. After reaching this area, the price action could head much lower or even higher. I'm not saying that to make sure I'm not wrong, I'm saying it because I don't know. The major bearish double-top pattern from 2021 may have reached the end of its influence, but I think ROKU will reach the support level of 26.64 at least. After that is anyone's guess.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
crypto harm reduction plan (trade boomer commodities instead)hi, hope all is well and you are all taking care of yourself
*boomer rant incoming*
the crypto market is the worst of all corners of the internet and finance. a bloodthirsty chimera of all our traps and shortcomings on the designer steroids of tech. "the crypto space" is designed to make you miserable, alone, addicted, ashamed...in a state of mind that makes you more susceptible to the loss chasing it's manipulated to push you into. bleeding out your already serotonin and dopamine-starved brain, and making you feel like you have something to prove the deeper you go. to yourself, to your ideals, to your desperation over the financial system and debt-based USD hegemony. farming misery to steal yr coins. don't fall for it. you are fearfully and wonderfully made. position yourself to succeed. everyone says to take breaks but we all know how hard that is with a 24/7 market when we can't live a minute without our phones anyway
/boomer rant (and possible crypto bottom signal, i know ;-) actually still thinking crypto will bounce soon)
the good news is i've had much more success trading this gold range and i feel much better mentally, physically, and spiritually
market closes an hour a day and on the weekends, highly recommend. (absolutely medical advice)
(fib spirals made from double bottoms as per usual, different orientations visually fit til one emerges victorious as s&r...important to remember they are just s&r's. they are just curved trendlines with acceleration and decay, they can break and they are not 100% precise...always manage risk. and lock your scale. mine is 1:1 here, and lately i've been trying to use multiples or factors of 10 (10, 100, 0.1, 0.01) depending on what looks best with the timeframe)
not sure when/where the range would top out, just been trading it smallest possible positions for now. rewiring my brain. if ihs plays out looking at 1920-1930, which would also jibe with the highest resistance spiral. still working out timefibs
sacredtraders.com
sacredtraders.com
both have amazing free vids on youtube, jenkins' www.youtube.com is really all you need, watch at 0.5x speed over and over again
take care, and always remember money aint shit. It's all God's anyway