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 😊
Fibonacci Spirals
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
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)
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
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
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:
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
seek and you will findmore assured version of this idea with timefibs
spirals made from 2021 tops then visually fit and triangle highlighted, getting tight
timefibs made from converting price to time (a la the guru you should be watching yesterday michael s jenkins - www.youtube.com)
aka $64k top = 64 weeks from that top
& 69 weeks from $69k top
watching this as a resistance, kinda embarrassed to be bearish here tbh but i'm loyal to my htf spirals wutamagonnado
mostly trading metals these days bc crypto is toxic, and yes i'm aware that sentiment may be a bottom signal lol. personally love a market that closes and so will you
far be it from me to call the bottom of this lil scalliwag but currently side-eyeing 14.8 if we go lower. maybe a wick?
stay safe out there, and do one thing today to take care of yourself
"He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity."
6.854 sphiralyou have to expand/pinch the scale to snap the shapes back to where they're supposed to be (shoutout to my fav @TradingView glitch)
time = price
orange are clockwise and counterclockwise spirals made from radius x 6.854 (vertical from center) of OG circle. can the clockwise and counterclockwise convergence of 1.618 ^ 4 really be random? even if algos are just using the same coloring book...
copied and pasted OG circle and added levels so you can see the harmonics within the trend, but i'm really posting this to keep track of the orange spiral...arcs also fit but too many notes
i'm thinking spirals of diff harmonic radii call micro reversal points within the larger trend, showing cycles within cycles and cycle confluence. maybe someday i'll do them all on one chart LOL
blessed are the meek, for they shall inherit the earth (matthew 5:5)
a map scribbled on a napkini forget which bottoms/tops i made the spiral from...i think it's just 1 ratio but at some predetermined angle but i really can't remember lol
but those are the same spiral from reversal points, copied and pasted...not random
a break and dump = shark confluence
trade responsibly, get some sleep
germinatrixbroke the clockwise resistance but i just realized it bounced off the counterclockwise resistance
(all same spiral from prior tops, visually fit to more recent tops/bottoms...imo not drawing random lines on charts...just a visual/geometric expression of recursion & history rhyming...moving shapes around/applying growth multiples...position means something in pricetime - position of observer as well)
foundation
hope everyone is enjoying the summer and some good company
stay safe out there
USD/JPY - Support and Resistances from the low to the high a EWhey guys,
if the amount of strokes bothers you just zoom in. I think it's more helpful for swing traders.
The forex pair made its low in Q3 2011 at 75,554. 👍
Since then, she has been able to establish a long-term upward trend again.👌
The intermediate high wave 1 or (A) stopped at 125,879 and formed an Adam and Eve pattern after we had a recent push to the current ATH at 139,394.
EW technically quite a bit is possible, but first let's look at the time periods
The Fib Cycle shows that the POC was breached at 0.786 and the last upward thrust began at 0.886
According to the trend-based fixed time, the IMO current high from low to A to B is an almost exact hit with 1,618 👌❕
The 0.786 Fib Extension also meets the high, Fib Retracement Wave C, current high as well 1. Target zones for Wave C drawing a nice monthly Doji on Monday ✔
The 5 waves would also be an option, but according to the textbook, 2 impulse waves seem more consistent to me
But you never know how long the Fed will play its games with small investors. In other words, they reacted far too late to permanent inflation
The street must be protected 😉
I would like to mention that all I post are just options and my own opinion!
Always trade with SL, and do not risk more than 1% of your portfolio (max 3%) per trade.
If you have any questions, let me know
➡️ If you like my posts, smash the like 👍👍 button, comment or follow me. ⬅️
Thanks for reading my ideas,
Trade save !!
🤑 ⚱ 💸 💲
bitty time spiralsspiral of time between 12/2013-12/2017 tops, all same spiral, solid = clockwise & dashed = counterclockwise
fit to tops and bottoms, vertical lines tangent = reversal dates?
scale = 1000:1
resistance, and price crossing outside of it indicating trend reversal (aka price moving outside the trend indicated by the boundary of the shape), seems legit but i'm really not sure of support...which placement will it respect? the lines are magnets just like regular fibs/fans/trendlines
God help you if you take this to be financial advice, still pondering all this and also minor changes in placement/creation can have a huge effect on a scale this size
stay safe and hydrated out there...enjoy the summer! bring bitty to the beach if you have to <3
spirals are special snowflakes (wen 3D polar)these are all root 5 spirals (of the original circle...meaning the segment i'm creating them from is 2.236 times the radius of the original circle)
not only does final placement and direction of rotation (clockwise or counterclockwise) matter, but the positioning of the original segment matters. for example all of these spirals have the same radius but they look wildly different because of the original angle of the segment i'm deriving them from. (remember from geometry class that every point on a circle is equidistant from the center - that's the beauty of circles)
perhaps something meaningful in drawing them at 0, 90, 180, and 270 degrees as the limits of differences in direction
ultimately i think the spirals can help visualize the chart in 3d...as an axis or line of sight
(i spent way too long yesterday drawing circles with my finger in midair, in different directions and moving my head/perspective to try to understand sine waves...then thinking about what this all means for cycles)
sketchpad rektpad i think i was playing with pitching the circle here (tilt your head), and considering it could be pitched in two different (probs more) ways. then did pitchfans of triggernometric triangles and copied and pasted them to diff reversal points.
trying to learn thru play...putting it all together slowly and messily :-) maybe i should just get a coloring book
learn:
michael s jenkins
larry pesavento
jim bartelloni (bartscharts)
gann, probably
candleboxAI on twitter (and most of the ppl he follows esp GannJourneyman)
Triggernometry aka "Trig identities on charts??????....rekt"Posting this mostly so I can find it later, and some thoughts/guidance from actual mathemagicians would be wonderful :-) . these types of thoughts are constantly dancing around my unmedicated adhd brain like "too many notes" all the time...coupled with a math career cut short right at trig and i'm just confuuuuuused but intrigued and would love to talk to other wannabe/real nerds about this stuff!
Chart is scaled 100:1 (though I've also played with scaling / squaring the chart to a particular move, so that it looks geometrically 1:1...like a square. yes the ruler and the protractor come out. i always think of the resulting circle as a lens)
Sine, cosine, and tangent of unit circle. Not sure if changing the quadrant of the circle matters. or if the quadrant you place the identities in should depend on the direction you're projecting the move in (you could draw them in all four if you wanted?) But placement does matter, obvi. Just like with fib extensions. Where you're deriving from, and where you're placing them. I'm sure there are other identities that work...but what do they mean?
Sine: Price (Opposite aka y axis/Hypotenuse)
Cosine: Time (Adjacent aka x axis/Hypotenuse)
Tangent: Price of squared circle (as i understand it ... the square in general is total possibilities...theoretical limit...IIRC it was 3BlueBrown on youtube who described the square, in general, as probability? Least-squares? IDK. And then the circle, according to this framework, would be the actual limit/resistance/boundary of the move?) So the difference between the square and the circle is theoretical vs actual? Something something calculus????
I've also played with spirals of 90 degrees and 0 degrees (which would be the limits of sine and cosine aka price and time? of the circle?) but with multiples and factors of the unit circle...so, .707, .314, .577...some phi ratios as well. and phi multiples and square roots seem to work too.
So I'm wondering in what sense angles and their trig identities ...and what they represent which is speed? are the same thing as, just a different translation/vibration of, smaller / bigger circles. the max time/price change (aka at 0 and 90 degrees) in a .707 circle, for example, would mean the same thing as sine and cosine of ... 63 degrees? (90 x .707) depending on placement. because circle harmonics are just shorter and longer time cycles/fractals? I literally just figured out what radians are so be nice to me :-)
Gurus
Michael S. Jenkins (a few videos on youtube) is my favorite, and he is inspired by Gann who I need to read more of. Jenkins' idea (possibly Gann as well?) is that time=price. Lots of examples of, say, price increasing by $1000 over 1000 days (or whatever the time unit is...you have to find it).
Larry Pesavento
Jim Bartelloni
CandleboxAI and GannJourneyman on twitter but I don't really understand their charts yet
messy geo playjust kitten around...sketching out/playing with this idea again...anxious to enter meatverse for the day and also TV's being discrete w/time (and finite w/zooming out on small TFs) makes precision with esp circles and spirals difficult
root 5 spiral (from vesica piscis) of last bull/correction tops...that I did fit, by sight, to recent tops but am guessing being 100% precise with circles would fix/enable pinpoint precision from points of projection.
idk tho, just having some fun ;-)
stay safe and kind out there