All language subtitles for 6. Fibonacci Trading Demonstration

So this is just a diagram here, we have our prices actually on the left hand side, you can see it

starting at 15, whatever units you're using, euros, dollars, whatever, but it started at 15.

And then as time goes from left to right, still as normal, but in most recent times to the far, far

right.

And but here what we see on the right hand side are the actual Fibonacci levels or some of the Fibonacci

levels.

And we're highlighting your one hundred sixty one point thirty eight point two all the way down to zero

there.

And remember, the levels are based on the trading range over a period of time.

So I choose a period of time and I can choose that period of time.

When you're using train platform software, the Fibonacci levels economically calculate and overlay

on top of that.

So if we simply looked at just a little bit of this here, you can see as we looked at that top, we

will walk that one hundred there that's telling us that's really at a high Fibonacci level, that we're

probably not going to go above 100.

That's really a very, very strong indicator and that we might want to sell at that period by the same

token, as we come off that level and that we're going to see more of this trading range up and down.

But as we approach that sixty one point eight, you know, that's kind of a support level that's going

to support and say, no, we're going to rebound off the bottom of that.

And what might then start off the chart as far as what happens over the next days?

In the future, we're thinking, OK, it's kind of gotten a little bit below.

We can see a little too much below sixty one point eight.

Now we want to watch to see if it really is more of a support and really tries to go back up or if it's

going to break through that and keep going down as far as that.

So you can see there's a couple of times when I purchased the support line that, you know, kind of

bluish line there at sixty one point eight where we would be buying.

Right.

It's approaching it.

And I buy and I'm not selling because it's still in between, but it comes down again.

There's been another buying opportunity.

And so we're watching the Fibonacci levels, looking for it to break through and pass to those levels

or bounce off those levels, basically watching for it to bounce off those levels.

Now, if you look at the 15 go on to the right, you should see and say, well, wait a minute here.

You know, it's it's actually gone through those levels.

It started at 15 kind of bounce along the bottom along that zero range level, that zero percent, but

then started going up and it went up to that twenty three point six, that yellow line and just burst

right through there.

That didn't care at all and then kept going up on up to thirty eight point two and burst through that

and looks like 50 percent there in purple and then well past the sixty one point eight and just like

burst through all those things break broke through all of those.

So you can see the strong trend is going to blow through these resistance levels, these these these

things that resist going through them.

And then it gets up to that resistance level of one hundred eventually.

And so it's coming back down.

And then we're looking at the bottom would be support levels.

But you can see that when you're watching with Fibonacci, you want to know you'll be watching.

Is it is it is it truly going to break through the level or is it going to is it going to come back

down off it?

And we might use our trading based around that, whether we're putting in a stop loss or or we're putting

in different types of market trading mechanisms we'll look at.

But you can see that's an example how that would happen.

And one way you can look at that, too, is the the deeper the move, the stronger the Fibonacci indicator.

So if we looked at that and we said, OK, twenty three point six is not is deeply moved.

Right.

It's not as strong a move as, let's say, three point two or certainly sixty one point or one hundred.

So if there's a better chance that it's going to break through a twenty three point six level going

upwards, then it would, let's see through sixty one point eight.

By the same token, if it's coming down like off that top near that one hundred and it's coming down

at sixty one point eight, there's a better chance is going to break through sixty one point eight percent

going downward versus, let's see, going on down to thirty eight point two.

So you can kind of use that as a gauge in terms of strength of what might be happening with the Fibonacci

sequence and using this Fibonacci indicator.

And so that's why it's best to use Fibonacci, I believe, as a confirming tool with another indicator.

Right now, some people just trade Fibonacci levels.

They just truly believe in it.

And it's OK.

Trading with something is better than nothing, at least something more prudently Fibonacci.

But I think it's just best to use coming at you with another thing to help help confirm it.

And then again, you set the time frame and then you overlay the Fibonacci on the chart.

Right.

So that's you're the one deciding how many days we're looking back at.

And, you know, it's going to change your chart and what you might trade based on how many days you

look back.

So let's look at that with a live real example here.

So if we look at this, there's a real security here and I've set the look back period over four forty

five days.

I know this is periods I have on Tuesdays.

If you were a day trader, you might choose this as forty five minutes for your Fibonacci level mean

you would actually come up with this kind of the same thing with if this was within a day's timeframe.

But I'm choosing forty five days and you can see where the blue line is.

That's when the forty five days lookback goes as I had set to start.

Right.

That kind of the peak there of that, the highest peak.

If we were to go back we could go back another forty five days or go back 90 days, 180 days.

Then I'd be capturing more of this longer chart.

But with my Fibonacci setting it at forty five days, you can see I'm really starting at that peak and

I'm looking at that to see if I've got a resistance level at one 1/2 percent and seeing what happens

from there.

And seeing what what has transpired before the current day price would be on the far right.

There you see where a sixty four point eighty three.

So that's what I'm trading at right now or what I could buy and let's say it right now.

But you can kind of see how the how it bounced off that hundred percent level and then start going through

more levels.

You see, we've got long red candlesticks, so that means it's closing lower than the opening a little

bit.

And then towards the bottom, we have a little bit of a trading range in there, between zero and about

thirty eight point two percent.

But now we've gone lower to.

So if I was to at this interpret this, I'd say, OK, I'm pretty darn low close to my zero now, you

know, at sixty four point eight, it might be a better chance for an upward move.

And I can see the whole range of that would be up to five units or seventy five dollars.

Let's use dollars as far as that's the number to the right.

The first number, one hundred percent, sixty one point eight percent.

But you can see at the top 100 percent, that's we're about seventy five, 10.

So this is looking back or forty five days.

And I can base that saying, OK, I can see I've got more upside opportunity, maybe the downside opportunity,

but I would want to use maybe other indicators to confirm that.

But let's say I change that.

And I said I don't want to look all the way back to forty five days.

That seems like ancient history.

Now we're definitely in this more narrow trading range.

Let's look back less time.

So now I'm going back to more of that trading range or more narrow range, looking back over twenty

six days, because this is really kind of more the range I'm in kind of right now.

It was had that high high, which is a good, you know, so five dollars might give me an idea of potential.

But right now we seem to be stuck more in this range between like sixty seven dollars and sixty three

dollars.

So if I look at that way, you can see now and it's a little hard to see when you overlay these sometimes

with the volume bars and stuff.

But you can see I'm right near that.

You know that thirty eight point two percent would be the second line.

Blue line from the bottom is thirty eight point two, then it's a fifty percent.

And then you could probably see the sixty one point eight pretty good and certainly one hundred percent.

So it's sixty four point eighty three.

I'm just right around that thirty point two percent now.

Much more to go break through those those, those other levels, the fifty and the sixty one point eight

percent.

So that would get me up to sixty around sixty six dollars.

It looks like the sixty six forty nine or excuse me.

Even though it's not that at sixty five.

Forty nine.

Excuse me.

So that's where I can get a lot harder to read.

But you can see I don't have much to go to break through those upper levels, but I could see all my

potential might get me really more towards the sixty seven if I was looking at this.

But the same idea that I'm more towards the bottom part of my Fibonacci mark to the bottom to part of

these levels.

But if I look at it here, I've got more ways to go from, you know, from the thirty eight point two

to zero well percentages than when I was looking at over forty five days.

So that's where the key part with Fibonacci comes in, is setting your time frames and where you'd want

to learn even more about the setting time frames.

And you can see the concept I'm using here is trying to look at more of a true range or the more or

more recent time versus looking back over the entire chart or shrilling at the peak and how that changes

my Fibonacci levels.

And so if we look at both charts side by side and say, well, I want to make a buying decision at the

sixty one point eight level, let's say once I go above what's on below and I go, I've decided my rule

is I want to buy when it hits sixty one point eight and breaks through that that the resistance level,

then I'm buying.

That's when I'm buying it.

Let's say that's what I want to do.

I don't want to buy thirty point two because that's not as strong.

I want to really have a stronger indicator.

So I want to buy at sixty one point eight.

So if you look at the longer time frame, the forty five day time frame on the left and we have the

twenty six day time frame in the right, you can see that I would be buying at sixty one point and once

it got up to seventy dollars and fifty three cents up from sixty four eighty three right now if I look

on the right I'm still buying at a sixty one point eight level.

It's just I changed my time frame.

I'll be buying at sixty five dollars and forty nine cents.

So what is the same one.

Better than the other.

No it's just different time frames.

But you can see that if I'm using these Fibonacci levels, if I have a longer time frame, I'm going

to establish more deeper resistance levels or or I'm going to have to prove that the price is going

to prove itself to break through these levels more.

You know, and so I be buying in later at seventeen point five three.

You can see I gave up five dollars worth of Geens per share of the security by waiting till that.

But I would feel more if you're more, let's say, a little more conservative, you'd say, yeah, that's

fine.

I just want to use this with other confirming indicators and really have this be really clear to me.

So I'm going to use a little time, a little longer time frame that's really proven.

The breakthrough that where I might be looking at a shorter time frame at the sixty four point eight

three.

And if we were to talk a little bit more about Fibonacci, as in terms of trading indicators, those

timeframes are real important.

And this is a you know, this is.

Just some general terms you can use for a trader's demus, a scalper all the way up to a carrier trader.

There's different ways you can do an active trade or whatever.

This came from a nice source that would point you to trading Fibonacci dot com and have no no investment

in them or any connection to them other.

And I think they're good site about learning more about trading Fibonacci and really getting Fibonacci.

Now, if you go to that site, I understand their focus on forex.

So they they focus a lot on forex, but they also work in stocks and cryptocurrency, too, a little

bit.

But the their basis is around forex.

Again, when using technical analysis, you can use these tools from analogy, whether you're trading

forex or cryptocurrency like Bitcoin or stock, you know, all those things all apply.

And so when you're setting your time frame, you can see the different time frames, you know, scalpers

looking at seconds and minutes.

They're just trying to make really a lot of a lot of trades.

Real quick Daytrotter minutes, hours, and they'll close out at the end of the period and so on.

Up to carry trader might be looking or, you know, one to 12 months.

Right.

So you would be sending your Fibonacci levels to kind of match up with maybe those timeframes or with

those timeframes.

If I'm a day trader, for example, I'm not going to look over weeks and months.

I'm going to look at minutes and hours when I'm looking at my Fibonacci levels.

So Fibonacci as a trading indicator, passionate debate for sure.

Supporters say it really works and they believe in it and they they embrace it and they just let them

just use only that caution on that.

But they do.

And so the Spurs really believe it and love it and use it.

Detractors say, come on, it's just a sequence of numbers done by some old mathematician guy.

It's not some mystical trading indicator.

In addition, they do make a point.

It can be hard to draw the lines on.

They're hard to see and interpret them and understand what day's your length.

Your time frame can be a little bit more trick your advance.

So there is a point there, but that doesn't mean it's not a good, you know, doesn't work.

It just means you have to be a little more practiced with it.

So and sometimes you have things than anything else is.

I think the movement is one where it can be kind of a self-fulfilling prophecy, right.

Where it works because enough traders are using it and they believe it and then act on it.

So when a Fibonacci level is being approached or being broken through, there are a lot of people believe

it can actually see that and are doing things based on that.

So when that happens, that means they're buying or selling based on that.

And that's going to actually almost prove the indicator that the indicators can work because people

are using it.

I mean, if it if we said that every day as a sunny day in stocks or securities or cryptocurrency always

rises on sunny days, well, heck, if it was a sunny day, then you'd be buying.

Right.

Cloudy days, I guess we'd sell.

So that's a little bit unfair.

Fibonacci, by the way, it's a lot more detailed than sunny and cloudy days.

But you get the idea there can be a little bit of a self-fulfilling prophecy.

And if it is, that's OK.

That means we can use it as a as a real trading tool.

And the reality of all of this is that any kid can work some of the time.

Right.

But not all of the time.

There's no foolproof indicators.

And that's why it's good to pair with another indicator for confirmation.

I just really strong that, especially with a notch.

I really believe that, you know, just using another indicator and then confirm with Fibonacci whether

it's moving averages, candlestick charts, whatever, candlestick price patterns, whatever it might

be.

Just using more than one indicator can be really helpful, particularly with Fibonacci.

But if you like treif, I'm not sure that's fine, too.

You know, this that's where that testing and paper trading can real help to to see how your successes,

if you're trading only Fibonacci and it's not working out well, then you just need to change your plan

and maybe add a second confirmation thing would be maybe a good thing or a good idea to try.