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Fibonacci

Pulse of an Asset via Fibonacci: DOW Jones at ATH Impulse Redux"Impulse" is a surge that creates "Ripples", like a pebble into water. "Impulse Redux" is returning of wave to the original source of energy. "Impulse Core" is the zone of maximum energy, in the Golden Pocket. Plotted here is the wave down from DOW's All Time High. The Impulse started and defined the pullback from ATH. We have now returned to the Impulse Core at End of Week. Are the sellers still there? Enough to absorb the buying power? Reaction at Impulse is worth observing closely to gauge energy. Rejection is expected on at least first approach if not several. Part of my ongoing series to collect examples of my Methodology : (click links below) Chapter 1: Introduction and numerous Examples Chapter 2: Detailed views and Wave Analysis Chapter 3: The Dreaded 9.618: Murderer of Moves Chapter 4: Impulse Redux: Return to Birth place <= Current Example Chapter 5: Golden Growth: Parabolic Expansions Chapter 6: Give me a ping Vasili: one Ping only . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity . each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos . . . want to Learn a little More? can you Spend a few Moments? click the Links under Related.
EASYMARKETS:DOWUSDEducation
by EuroMotif
5
Trading Chaos Part 4 | Elliott WavesHello, everyone! Today we are going to spot the most important and challenging part of Trading Chaos by Bill Williams(BW) – the Elliott waves. This analysis is the most efficient in combination with other techniques of Trading Chaos. Market always moves with the waves and BW developed the conception which eliminate the uncertainty of Elliott Waves. In this article we will consider every wave and explain how to spot their target areas. First of all we need to understand the 5 “magic bullets” which kill the trend. They are: Divergence with the Oscillator Target zone The squat bar at the one of three top bars Fractal at the top Momentum change Today we are goin to consider only the target zone. Other tools we will reveal in the next articles about Trading Chaos. How to spot Wave 1 start? Research the last wave from the previous trend. This should be wave 5 or c. This last wave have the typical structure of waves with less scale. You can use the technique for Wave 5 end defining to spot when trend is finished. How to spot Wave 1 end? Search the 5-waves structure inside the Wave 1. You also should spot the 5-th wave end. Use the 5 “magic bullets” which usually kill the trend.
BITSTAMP:BTCUSDEducation
by Skyrexio
2
Trade Targets & Take Profit AreasForex is not about making pips, but managing your pips per trade. There are many different areas in which you can take profit. Advise you back test to see what works best for you and your trading style. You must also take into consideration if you are trading with the trend or against the trend. When looking at trade targets look left at what barriers price may stall at and this helps find areas to target and/or take profit. Trading With The Trend: 1) Look at most recent high or low 2) Look for areas of support and resistance 3) Find Fibonacci Extension Levels ( you tube, pdf and google information easy to look up and learn from) Trading Against The Trend: 1) Trending into a Fibonacci retracement levels 2) Trading into a trend-line 3) Trading back to a support and resistance level * Going With current trend will be easier to make a profit from and to manage risk for too, with trades.
Education
by Anbat
How to measue targets in EW perspective; ''Wave 5''There are a lot of traders, Contacting me with the question, how to identify the target of wave 5 after an 4 wave impulse wave structure. Well, general rule, in which you can identify the wave 5 pattern target after completion wave 4 is following; 1. Measure wave 1 and use the lenght of the wave to identify your wave 5 target. Thus by starting at the end of wave 4. 2. Measure the 61.8% ratio of wave 2-3, apply the same rule as mentioned above. So the lenght of the 61.8% of wave 3, is your target at the end of wave 4. 3. Measure the 127.2% Fibonacci Retracement ratio of Wave 4. By connection the high of wave 3 with the low of wave 4. --> Important NOTE: Some correctional Flat running waves intend to have a deeper A wave then C wave. So do not connect the retracement from the high of wave 3, to the low of wave A. By doing this, you will find inproper targets for wave 5. Please rate this education chart, and if you want more to these, please let me know in the comments. Also other feedback is mostly welcome!
Education
by AppY-Crypto
How To Find The Best Trend Line Break and RetestWait For Price To Break Trend Line. Wait For Price To Close Below Trend Line. Watch For A Price Action Signal To Form On The Retest. Watch For A Rejection Candlestick or a Pin Bar. In the example below, the candlestick wick protrudes through EMA 10, EMA 20, Trend Line, and 50% Fibonacci Retracement Level. Enter at the close price of rejection candlestick. Close Price is 188.13 in this example. Note: The best trend lines has 4 or more touches.
DEducation
by TradeLive-
Where to target and what to do once there?I've been bad. I've been greedy with having "strong hands" when I had some 5 to 7R, really should have gotten out when it started retracing. How do I let it go from over 5R to -1? From March-April to September 2020 I got baited. There was oil, there were all the USD trends in summer, and they all went rather far. After this I wanted to keep running my winners, I was not sure exactly what I should do, I was busy with other things to look into it (finalize a strategy and add 2 new ones to my pool of 2 + 2 I don't use so really double my setups) I just went for hold but on top of that I forgot about my positions and let them run (reverse) forever without paying much attention. I spent 2 years on just 1 strategy (+2 I do not use) from mid-late 2018 to mid-late 2020. Took me I'd say around 10,000 hours of backtesting, trial and error, and so on, to make it right. Added a new one in 6 months (all day every day), and then in early 2021 damn it's actually recent I casually added 2 in a few days no sweat. My first strategy has a fixed target, or had, actually I am not entirely sure what to do here. But more generally I spent 4 years not really know what to do once the price got to the target area, should I trail with a tight stop or wide or just get out? But now I know. It is a long road. The basics however, they are instant. No work required, it only depends on the individual they either get it or they don't. It's like you start with an edge from day 1, at +1% and then you spend a whole lot of time to bring that to +20%. People at -100% the huge losers don't "just do the opposite" and end up at +100%. Don't think brokers checked? The big losers take 20 trades a day. They have 0 edge positive or negative. And winners mostly follow the trend, risk a little to make a lot, and hold. It's just that for optimal results they learn to not always hold. No, not "after having learned to hold", there is no unlearning. Those that don't hold from day 1, just bad, no hope. At least according to academics, regulators and brokers. People that don't hold winners from the start never make it. Simple stats. Getting started with targets is really easy. Entry does not matter, target is easy, stop too. Everything doesn't matter or is easy with investing. First, the observations (non exhaustive): There are 2 approach: 1- The robot. Throw a ball, the dog sees it, gets excited, chases the ball. The market throws some bounces, the "day" or "swing" trader sees them, gets excited, and chases. No added value, no intelligence. The price bounces, but in a very wide area and the bounce amplitude is random. So they think they found a holy grail, because damn they're onto something clearly no one noticed the price bounced on supports, and they insist on awful "strategies", try to make it work with 3 to 1 risk to reward, very far away stop since it bounces randomly around support, and the target is terribad for obvious reasons. Wide stop tiny target. 2- Since the price will bounce from moderatly to a lot, use this area as a target, and when the price starts reversing we know it probably will retrace significantly so we jump off the ship. The second approach is also buying in a downtrend on these supports same as 1-, but after having sold. So the "edge" noobies think they see and absolutely want to "take advantage of" is exploited this way, it is literally the same buying at supp. But I don't know I guess everyone today is terrible at math and logic they can't even think of buying at support without it being a ridiculous countertrend 0.3 reward to risk gamble, doesn't even cross their mind. You actually get to buy at support. What is funny is they see the price breakout, then go in a straight line to the next level, and they somehow get all excited "I'm going to buy". No one wants to sell? Brain not working properly. Makes no sense. It is rly binary, you either get it or dont. It is a skill check (or is it attribute?) like in RPG games. Which is nice since you get to know very fast if you will make it or not, no need to waste 5 years. I saw (and regulators + brokers tell us) there are some degenerates that have been losing for 10 years and still continue. I saw someone on youtube that has a 20 years long "career" and all he has done is lose! For 20 years! He even describes his 20 years of failure in a video, his wife almost left him and he had many struggles. He sells robots now, trying to get some of what he lost back. He probably thinks he was "so unfortunate" it is ok to scam people. "The kid has heart", ye that's what you say about losers. Just means someone is dumb enough to insist when something is clearly not working for them. There is not much more to it, the basics that is. Then from here getting good targets takes grinding, experience? Only way I know how to is with stats, even the "not stats people" look at the past and gain experience by "working out" like PTJ did to predict 1987 crash. He isn't a quant but still looked at the past. Even Warren Buffett learned from experience and made stats, I guess his targets are something like "how expensive" with variables "market emotions" and "interest rates" but he knows when expensive is too expensive based on statistics (that he read or experienced over the decades) not based on magical fairy dust. What to do at target? Well this is a long story. So many possibilities and ifs and buts. I'm going to show 2 examples and call it a day. There is a lot of stuff on the chart, it's not very clean, looks like a "technical analyst" or day trader chart, sorry. Obviously investing takes more than drawing 2 lines, there are going to be several conditions to enter, several conditions to where to enter, several things that go into the stop, the target, etc. A board hitting its head on a keyboard can't make money. The same way I doubt a robot mindlessly buying when a stock hits a P/E of 5 would make money, investors look at cash flow, management, past revenue, book value, competition, and many other things. Simple things, but several of them (not 1 million numbers either). So once the trade is entered, and target is at 6R: And yes it does not stop at every support, sometimes it fires past target: And finally, of course: Can be good places to add (after the bounce took place)!
Education
by MrRenev
SINPER CONFLUENCE TRADING OANDA:GBPUSD confluence trading is just multiple reasons stacking up in your favour to take the trade. you should always have some sort of validation to take a trade... my trading style consist of fibonacci levels, psychological levels, support resistance, trend line bounces and much more. one thing to remember is the more confluences you have the more confident you should be in taking the trade. in this example ive shown how you could plot your confluences for you to find a perfect entry with minimal drawdown. take your time to backtest and practice. get your eyes used to seeing these set ups occurring.
Education
by romailfx
Fibonacci Extension Tool (How To Use)How To Use The Fibonacci Extension Tool: Bearish example (like Chart) A) Highest Top Point B) Reversal Bottom Point C) 2nd Highest Top Point (Note) Can NOT be higher then A Point. D) Will be 3 points or targets, 1st target at 50% extension, 2nd target at 100% extension & 3rd target at 150% extension. The rules for take profit orders are very individual, but most traders use it as follows: A 50, 61.8 or 78.6 retracement will often go to the 161 Fibonacci extension after breaking through the 0%-level. A 38.2 retracement will often come to a halt at the 138 Fibonacci extension. Fibonacci extensions to the price moves. As you can see, the extensions provided great places for take profit orders. Conclusion: Fibonaccis are multi-functional This demonstrated how to use Fibonaccis efficiently in trading. Don’t make the mistake of idealizing Fibonacci s and believing that they are superior over other tools and methods. Fibonacci is a great tool to have and can be used very effectively as another confirmation method. Whether you are a trend following or a support and resistance trader, or just looking for ideas how to place your take profit orders, Fibonaccis are a great addition to your arsenal.
Education
by Anbat
Entries live examplesHere is an update to my previous idea on entries. I kept rambling on and on so this was too big for an update. Since you can't possibly cover the entire subject even in an entire book, let's go with 2 examples live, not in hindsight. They might (probably maybe even) just fail. Maybe I'll start a new idea with more 3-4 new ones, so we can look at entry + getting stopped (-1R) + trailing + target etc. Or maybe markets start trending a lot and I'm absorbed and can't be bothered posting. I don't know. Don't have a crystal ball. I want to update this with 2 live examples, and see how they go (probably both lose) 1- Here is an example where you only need a 15% winrate to make money. Price sometimes consolidates, stays within a range, and then goes down, at least often enough to breakeven right? Oh ye this goes beyond entry but basically before analysing much, the "pattern" or "price action" in itself should at least breakeven, it should have a chance to work. The risk being limited is what matters, like George Soros with the bank of England, he entered where he was close to "being wrong" (without being greedy trying to enter 5 pips from stop), same with Buffett, he enters when things look bad and could be about to turnaround or it could just be "the end" so he enters close to "being wrong". I don't like the words being wrong because this is not what it is, call it instead "trade invalidated". If I say something happens 20% of the time and it happens 20% of them that does not make me wrong 80% of the time, but rather right 100% of the time. This is something I did not mention before: as far as I, and everyone who isn't a troll, can tell: the price in sideways is random. So it does not matter where you enter in that area. How dense is it to try to catch the "magical perfect entry" in a RANDOM price action? You don't know where when why the price will go. If there was a magical entry then people could trade these sideways and make money, and to my knowledge the only people that do are retail day traders on the internet. This is not the best setup, but no setup is ever the best anyway so... Disclaimer: I am short NZDUSD. Net position will be short EURUSD actually XD But the EURUSD price action was just bad ye I don't know where to enter so it matters. The NZD isn't looking that bad after all. The EURUSD I think goes down, but chart looks disgusting, no way I can tell where to enter. Random sideways in a small area versus random sideways in a giant area. The different is risk to reward. Find the tool to express your ideas with the best RR. Now there are some added spreads but it's fine, not like I day trade with a stop 3 times the size of the spreads. And I might rotate back to being short the NZD, I kind of adapt all the time. If I get stopped on EURNZD and I have no good opportunity to short EURUSD or my opinion of it going down diminishes (it's not binary by the way you have to think in probas), and NZDUSD continues down, well in that case I won't be short EURUSD anymore, and might even increase my NZDUSD size (but only when a pullback happens). So ye that part is binary for me, and for Warren Buffett too by the way: Me: No pullback I don't buy WB: No discount, no PE below 10 (or something) = I don't buy. But I don't care about catching the very bottom or having an exact precise entry. Since Warren Buffett does it that way, and made billions, I think it's safe to say it's ok to do it that way too, even if he traded "investing" markets and we are talking about "hedging" markets here. 2- FOMC on the 22. Might have to wait until then, or Monday at least (market could move Monday in anticipation). Here I think the entry matters :p The number might not (oh yes actually it does) but the date does (or more). Odds of it being a coincidence are really low. Statistically this has absolutely NOT been a coincidence. Here I'm supposed to emphasize the "been", and go "past performance does not bla bla bla" I mean... If I have to explain this in the first place... If an "individual investor" needs this explained to them, well this is the wrong job for them. This is so trivial. Ye, the stupid pattern might repeat itself, I'm willing to risk 1 to make ??? 10? If it keeps going? Past bull markets lasted 1.5 - 4 years so statistically I could make 10 or more. I don't have any clear stats on this pattern, how often do they repeat themselves, would be too simple, anyone with more than 2 fingers and the ability to spell their name and count to 10 would make money. Which is not everyone, USA universities have "special classes" for "high school graduates" that are illiterate and have a lower math level than ravens. So... with everyone becoming suprisingly dumb, AND the "dumb money" getting interested in the market... my odds of winning and making money go up. There is much more to take into account, like the FED manipulating markets. But here the entry matters. Like when you have something that had 1/65 million odds of happening, you can't ignore it. You could say "hey maybe they created this on purpose to trick people"... That isn't a real thing. By experience it does not happen, again, statistically. FOMC is the 21-22. FX & commodities should move too once "certainty" comes back. Inch'allah things get moving on the 20 (monday), but either way we should go allelujah on the 22. Praised be Yahweh for making some people smart and some people dumb. And Dionysus if things don't work out.
CME_MINI:ES1!Education
by MrRenev
2
The Fibonacci Golden RatioThe Golden Ratio: After opening, few numbers in the Fibonacci series, the ratio that will appear after every greater number will equivalent to .618, whilst the lowest number will be 1.618. These two important numbers are known as the Golden ratio. Example divide Fib #: 34/55= 1.618 Fibonacci numbers were first introduced in European countries, which was still using Roman numerals with the decimal system or the Hindu-Arabic numerals as presently used. The Fibonacci sequence: 1,1,2,3,5,8,13,21,34 and so on to infinity, is made by adding the two previous numbers in the sequence, to come up with the next number. Golden ratio is connected to Fibonacci, as it was recorded that just after the first few numbers in Fibonacci sequence, ratio of any number to the next higher number is approximately .618, and the lower number is 1.618. These two numbers are known as the Golden ratio. Trading golden ratio means that traders need to find previous high or previous low on the wished trading chart (daily high or low, weekly high or low, etc.), and then to analyze significant retracement price levels typically translated into percentages such as 23.6, 38.2%, 50%, and 61.8% on the chart. Golden ratio trading strategy represents a strategy where traders buy or sell assets using retracement and expansion levels for stop loss, entry price, and target price. What Can Fibonacci Do For You? 1) Fibonacci shows us where to place stop-loss levels. Any trader can apply these numbers to make a stop loss level. For example, if at least three price levels of Fibonacci numbers appear with a different and tight spot, then a dealer can put a stop loss either under or above the spot to settle down things. 2) Fibonacci determines position size. Position size can be determined by the Fibonacci, which relies on the level of risk you take in your deal. For example, if the prices are exactly on a required level, then at that time, you would probably wish to have multiple positions that could move your price further. 3) Fibonacci defines targets. In Fibonacci numbers, when the pattern has finished in a price zone, you can take advantage of it to profit. This objective will assist the traders in being analytical in their strategy.
Education
by Anbat
Fibonacci Expansion (How To Use)PLOTTING A FIBONACCI EXPANSION: - Select the Fibonacci Expansion Tool 1) Start From The Top Of The Trend (In A Down Trend) 2) Set The Middle Point Where The Correction Started 3) Set The 3rd Point, Where The Correction Ended Possible Target areas and/or zones are plotted below this 3rd point for you to utilize as per your risk management and trading style. *For an uptrend set up you would just need to turn the above upside down, not hard but will help lessen your stress when trading FX.
Education
by Anbat
9
How to use the Tick and Price Action Indicator for NQ 5 minuteHow to use the Tick and Price Action Indicator in concert with Value Area for NQ 5 minute 1) Identify the fibonacci extensions based on previous day value area 2) Activate developing VA for the current day 3) Apply the Tick and Price Action Indicator and follow the arrows and colours 4) Enter only if NQ is trading outside of the current day Value Area (see your developing VA for this as outlined in step 2) 5) Use the fibonaccis in step 1 for support/resistance
CME_MINI:NQ1!Education
by GanesaPonraja
1
Fibonacci Extensions Part 5What Are Fibonacci Extensions? Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the price may reverse. Key Takeaways: Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%. The Fibonacci extensions show how far the next price wave could move following a pullback. Fibonacci ratios are common in everyday life, seen in galaxy formations, architecture, as well as how some plants grow. Therefore, some traders believe these common ratios may also have significance in the financial markets. Extension levels signal possible areas of importance, but should not be relied on exclusively. The Difference Between Fibonacci Extensions and Fibonacci Retracements While extensions show where the price will go following a retracement, Fibonacci retracement levels indicate how deep a retracement could be. In other words, Fibonacci retracements measure the pullbacks within a trend, while Fibonacci extensions measure the impulse waves in the direction of the trend.
Education
by Anbat
Fibonacci Retracement Definition Part 4Fibonacci Retracement Definition Is: In finance, Fibonacci retracement is a method of technical analysis for determining support and resistance levels. It is named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace a portion of a move, before a trend continues in the original direction. A Fibonacci retracement forecast is created by taking two extreme points on a chart and dividing the vertical distance by important Fibonacci ratios. 0% is considered to be the start of the retracement, while 100% is a complete reversal to the original price before the move. Horizontal lines are drawn in the chart for these price levels to provide support and resistance levels. Common levels are 23.6%, 38.2%, 50%, and 61.8%. Yes, you can add or change any and/or all of these numbers to your trading style- they can be used to enter a trade, set stop loss and targets. This retracement percentage lines are short term reversal areas to possible take new trades with the main trend of day, week or month.
Education
by Anbat
Fibonacci Retracement Entries Part 3Fibonacci Retracement Tool can: 1) Give you Support lines or areas 2) Give you Resistance lines or areas 3) Where to enter a trade 4) Where to place your stop loss 5) Where to place your target profit (use the Fibonacci extension tool for profit targets)- where price action MIGHT go too. Your trading will be easier if you use the Fibonacci Retracement tool (and Extension tool)- by making your trading strategy mechanical. Trading without emotions and with risk management will put you into the 10% of successful traders, this is where you want to be. Buy low into an upwards trend and Sell low into a downtrend will great increase your profits and reduce your stress- Fibonacci Tool is the one for this.
Education
by Anbat
What Fibonacci Retracements Are? Part 2Retracements: Short term price corrections during an overall larger either upward trend or downward trend. Retracements are price corrections and temporary price reversals that do not indicate a change in the direction of the larger trend. These retracements can be used for short term trading ( scalping or day trading ... or longer time frames). The main benefit of retracements are: you can enter a trade at a better price, just before the continuation of the original move. Why retracements occur? When more traders jump on a trade, some traders will take profit & close there trades causing a retracement to happen, or correction of major trend. Retracement Rules: 1) Buy pullbacks in an uptrend 2) Sell pullbacks in an downtrend *Example on 4 hour chart is a bearish trade with a retracement back into the golden zone of 38.2% to 61.50% which most reversals occur in, back into the major trend on that time frame. My advice is use Fibonacci indicator on 1 hour or higher to reduce the price action noise.
Education
by Anbat
Introduction To Fibonacci Numbers (How They Work) Part 1Forex Fibonacci numbers (How Do They Work?) In mathematics, the Fibonacci numbers are the numbers in the following integer sequence, called the Fibonacci sequence, and characterized by the fact that every number after the first two is the sum of the two preceding ones: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, continues for infinity. Introduction To Fibonacci We are interested in the essentials of the Fibonacci sequence and how they fit into the trading world. As you probably know the golden ratio could be found anywhere in the nature. Markets are not an exception. Fibonacci numbers traders use on charts work for one reason or another. There are a lot of debates WHY exactly price reacts to these levels but it is more important that it DOES. Fibonacci levels are sort of self-fulfilling prophecies. Means the more people use them, more powerful these levels become. IMPORTANT: Behind the scenes of the Forex trading world, magic happens. Smart money or Big banks are trading according to these very same Fibonacci number levels. Remember – Fibonacci is not just in trading but in any aspect of life numbers related. *This information is priceless to us – the retail traders. Some Important Fibonacci Levels: There are many Fibonacci numbers however traders use and rely on some levels more than the others. Most commonly used levels are: 23.6%, 38.2%, 50%, 61.8%, 100% and 161.8%. This is just a tool which needs other confirmation before making any trade.
Education
by Anbat
1