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Fibonacci Retracement

GOLD - Daily - Multi-Timeframe Analysis Series 1GOLD has a correlation to the strength of USD, as a risk-off asset investors seek haven in the event of Dollar weakness (USD falls > GOLD rises). I'm sure there's more to it than that, be sure to check it out online for yourself. Comments The Daily timeframe is looking very clean when it comes to price action. Having formed bearish MACD Divergence between 4th January - 20th Feb, we have since seen this break down on the the lower timeframes. What concerns me about shorting this just now though is the Daily 50 EMA which seems to be propping up price at the region of 1300. This is the same region we had a minor rejection on the Weekly timeframe too. The two red arrows highlight the potential for 2 shoulders, one left and one right, which could be an indication of a bearish Head & Shoulders pattern forming. This adds a lot of confluence to our overall bearish sentiment, and could be the markings of further consolidation which we referred to in the earlier lessons. A double top on the Daily would be a prime signal for a sell-off cascading up the higher timeframes. This may not happen if we see more selling pressure. Let's see what this next week brings! Key Note Head & Shoulders patters can be traded as is or used for overall market sentiment. In their nature, they are consolidation / reversal formations.
FX_IDC:XAUUSDEducation
by robdee4x
DXY - Monthly - Multi-Timeframe Analysis Series 1Continuing with another episode of Multi-Timeframe Analysis Series 1, I'd like to break down the DXY. The DXY being weighted as follows: EUR - 57.6% JPY - 13.6 % GBP - 11.9% CAD - 9.1% SEK - 4.2% CHF - 3.6% As you may imagine, there's a lot more interest in using the DXY for a correlation / confluence tool when trading the EURUSD. The EURO equates to over half of the overall weight of the index, meaning there's a majority interest in the EUR vs USD. We can use this to our advantage, alongside the USDOLLAR INDEX, to add positive or negative trade factors when considering positions across USD pairs and commodities. Comments Looking at the Monthly timeframe we appear to be stalling between the 61.8% retracement of A>B as indicated on the chart. Price is showing high test candles at this level, as well as a potential rolling double top (continuation formation). Given the circumstances of this in its current form, 94.00 could easily be on the cards as we move into the second quarter of 2019. Key Note At time of writing this, it's the current monthly candle cannot be considered an indication of direction just yet as it hasn't fully formed (being the 24th of the month).
TVC:DXYEducation
by robdee4x
3
Example of FibbyTenths indicator on DOGEBTCI recently put out an indicator entitled "FibbyTenths" and wanted to show a nice example of its usage. Here it is on DOGEBTC on the 1D chart. What are you looking at? Line 1.000 (pink) is a baseline from which all other levels are calculated. To get the 0.618 line (for example)= Baseline * 0.618. Pretty easy. As you can see, there are numerous examples of the price reversing direction from, or rebounding off, the 0.618 and 0.236 lines.
Education
by Quicksilver80
[DXY] How to use Fibonacci IndicatorHi guys ! This a simple chart with a explicit Fibonacci Indicator. Many people asking me how to use it, it's easy, have a look. Story : Fibonacci was an Italian mathematician (1175 - 1250). He discovered this number sequence like this: Each numbers is calculated by adding the two previous numbers, for exemple : 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89... The special thing in this sequence is that every numbers is 1.618 of previous and 0,618 of next one. And as you know, 1,618 is the "Gold number" . (Hope my english is not too bad haha) 1 - Choose a higher and lower price (downtrend) or lower and higher price (uptrend) 2 - Fibonacci will retrace different line at 23.6, 38.2, 50, 61.8, 78.6 and 100 % 3 - Theses line will be the next supports / resistances in the correction / bounce You can use it to place the best order (BUY or SELL) and make more profit. Ask me for any questions ! Thanks for your time.
TVC:DXYEducation
by AnthoXBT
Support and Resistance Levels with auto Fibonacci Setup TutorialIdentify horizontal support and resistance lines using your choice of 6 methods. Available options Lookback window: Number of bars back to consider in calculations Lookback window right (only applicable for methods 3 and 4): Number of bars to the right to consider in calculations Number of S/R lines to plot: S/R lines to plot (currently the max setting is 4 so 8 lines due to pine limitations. I can post separate scripts for each method that allow more depending on user feedback) Use Custom Time Frame? (M1, M6, M5 only work if viewing lower TF): Set a custom timeframe in minutes, then 1D for daily, 3D for 3 daily etc. Calculation offset: How many of the most recent bars to ignore in the calculations. Update Frequency: How many bars to wait until updating the lines since the last update. Things to tweak. I still need to test the methods, depending on that and feedback I can post separate scripts for each method that allow more depending lines or scrap some. I'll tweak the parameters for using linebreaks to scrap them. Currently required a three close through it (so two in one direction and one in the other). Fibs don't work on the static timeframe as I've reached certain restriction in the coding system. Link to Indicator Below are some examples using the default settings (which I have not optimized as of yet) Method 1 Method 2 Method 3 Method 4 Method 5 Method 6 Referral Links Bitmex 10% fee discount for 6 months www.bitmex.com TradingView (50% off after trial period ends) tradingview.go2cloud.org Tip Jar BTC: 1FgEeDDMF7QKydQPJVCDjp7ypjREp8XG6c LTC: LM9KsXz7GUxCN9g9EjTC8ayviDEmBK14rw
BITFINEX:EOSUSDEducation
by SemiQuant
25
BTCUSD- Understanding Structures in the Crypto MarketHi all, I felt compelled to spend quite a bit of time to create what I believe is an incredibly comprehensive guide to understanding the movements of the market. If you're tired of getting burned on every run, then look no further. Let's begin. You might notice a handful of purple and black bars in this chart- their purpose is to designate "structures", or zones of heavy resistance/support. They might take a moment to get a grasp of, but once you understand how to define them, it becomes easy, and you'll be to start predicting where a run will end with scary accuracy. To define a structure, you will essentially want to cover the .5-.618 region of a wave, although since waves rarely retrace exactly in that zone, you may want to expand your structures out a bit to cover wicks and outliers. Anyways, the easiest way to define your structure is simply by recognizing what our trend is. Would you be able to look at a chart and tell me when we've seen a bullish reversal or a bearish reversal? If not, it's quite easy; to spot a bullish reversal, look for a break above the previous high. To spot a bearish reversal, look for a break below the previous low. Obviously terms like "high" or "low" can be quite subjective, as there's a near infinite ways of looking at the charts, but having a bit of some background on Elliot Wave theory, Fibonacci retracements, and reversal candlestick patterns will help you recognize when a reversal is happening. The easiest way to try and find a reversal is by seeking out a definitive high and definitive low, and creating a Fibonacci retracement structure between the two. Let me go into detail a bit further below. If you reference the first picture above the chart, you'll see 3 blue arrows with a Fibonacci and a purple box. This is showing what a bullish trend would look like. To set up this structure, you must determine what your wave of interest is. In this example, we create our points based on the first arrow. In an uptrend, you will start your retracement from the top to the bottom, rather than the bottom to the top. The reason you want to do this is because you are retracing DOWN, so you want your retracement wave to head to the .618 in its respective direction. Anyways, as you can see, the second blue arrow is a retracement wave, and you can see that it touches the .618, ends, and then proceeds to start the third wave. Because we made a bounce off of the .618, we have confirmed continued bullish momentum. if we were to do a convincing close below the .618, this would more than likely indicate that a trend reversal is commencing. Understand that at times, we can be faked out by this, but this is the nature of trading. If you have a good trading strategy, you don't need to worry about losing trades every so often, so it's better to put your faith into something that's quite accurate rather than trade with no strategy in play. To keep in short (pun intended), whenever you are in a downtrend, the opposite applies to that of the uptrend; you will start your retracement from the bottom to the top. The same deal applies with the downtrend as it does the uptrend, in that a rejection of the .618 will most likely point to continued bearishness. Using these bullish and bearish wave structures are incredibly power tools that not only help you minimize losses, but they also give you the confidence to stay in a trade for longer than you might have realized was possible. Remember, if there's no clear signal of a trend change, then the trend will continue. So with these tools in hand, I went through every noticeable wave structure since the 3000 dollar range and determined wave lengths, which can be done by finding .5-.618 regions that appear to have found a lot of activity. For the most part, determining your wave structure will come down to common sense, but it takes a bit of practice to know where a wave starts and where a wave ends. If you look at each structure found in the chart, you'll notice they all start in different positions. I positioned each of them to reflect the date in which they first were established. As you can see, this is an incredibly powerful tool to have at your disposal, because it predicted the top in March, it predicted the top in May, and it predicted the top in July. Something tells me that this has predicted the top in September, too, but I'll let you guys figure that out ;). Additionally, the support structure (bottom purple bar) shows the rejection that we experienced in February, June, and August. I don't want to give too many details about my opinions or thoughts on what we have here, because this is meant to be educational over anything, but I hope that this helps you guys get a better understanding of what makes the market move the way it does. Feel free to message me if you have any questions, and be sure to shoot this a like if you dig what you've read. Happy trading!
BITSTAMP:BTCUSDEducation
by NickPadovani
2
The Golden Pocket Fibonacci like a BossBuying the pull back is always tricky. As a trader we deal with probabilities and try our very best to find high probability trades. We do this by finding confluence and various reasons to add to our trade setup. The Golden Pocket It is my ideal favorite zone to enter a high probability retracement after an impulse wave upwards. It is the 61.8% to 65% zone (highlighted in red). How to trade it i) Find a swing low and swing high points Bullish - Swing Low to Swing High Bearish - Swing High to Swing Low ii) Draw fib extension line iii) Find other confluence reasons to enter the trade besides this e.g. RSI levels, previous support levels. iv) Wait for confirmation of some form of support before considering entering the trade as it can sometimes just tear thru
BITFINEX:BTCUSDEducation
by mongacoin
8
5 STEPS TO CHANNEL THE TARGET WAVE 5 USING ELLIOTT WAVESSTEP 1 - Once the 1 wave is completed use Fib Retracement to find out the possible wave 2 level. Usually wave 2 is 0.5 - 0.8 of wave 1. In a uptrend Fib level is close to 0.8 but its the opposite on downtrend STEP 2- Once the wave 2 is completed use Fib Extension to find out the possible wave 3 level. Usually wave 3 is 1.618 of wave 1 or 2.618 of wave 2. STEP 3 - Once the wave 3 is completed then you can draw a line to join 1 and 3 and then draw a parallel line on wave 2 to project the wave 4. Usually wave 4 is 0.5 - 0.618 of wave 3 STEP 4 - Once wave 4 is completed then you can draw a line to join wave 2 and 4 and then remove the previously drawn line joining wave 1 and 3 STEP 5 - Then draw a parallel lines from wave 1 and 3 and the 50% trend line of the above parallel lines to project wave 5. Usually wave 5 is 1 or 0.618 of wave 1
BITSTAMP:BTCUSDEducation
by surangadesilva
8
EURUSD weekly Fibonacci levels for long term view and trading EURUSD is adhering or responding to the Fibonacci levels all most all of the times. When trader wants to ride the trend this much information is enough to enter and exit trades. We are not trying to forecast the direction or the top/bottom. We are trying to identify important zones in which price may turn in Future. Price patterns like double top or bottoms or many other patterns can be used along with Fibonacci. I have mentioned few on chart. Going ahead we can look for shorting opportunity near level 1 of Fibonacci and long near 1.27. Price may stop and turn(as expected) or continue up or down movement from mentioned levels. To avoid such scenarios where price continues the move instead of reversing, we need to take help of price structure and candlestick patterns. Many traders msg me about how Fibonacci doesn't work, I recommend them all to stop using Fibonacci and use the tool in which you believe. As a trader our job is not to criticize any tool or method of analysis. Our target needs to be "designing trade plan which works for us". No tool works independently in my experience, we always need to club different tools and use them collectively.
Education
by dhananjay.d.joshi
[Tips] High-Probability Trade with Fibonacci Retracement How To Use Fibonacci Retracement to find High-Probability Trade Setup Brief Definition: Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century. In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major High and Low) on a chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, 78.6%, and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. These ratios seem to play an important role in the financial market and can be used to determine critical points that cause price to reverse. The direction of the prior trend is likely to continue once the price has retraced to one of the ratios listed above. Tips for Effective Setup: 1. Analyze the general overview (big picture) of price movement to the current trend. In the above example, blue vertical line divides chart into 2 section, Downtrend on the left and Uptrend on the right. We can use MA200 to identify the overall trend. 2. Look at the price movement carefully and then draw Fibo Ret from the extreme pivot points. For Downtrend, drag 100% level from previous High to 0% level at the newly formed Low. For Uptrend, drag 100% level from previous Low to 0% level at the newly formed High. 3. Pay attention to the price movement to the opposite direction of the general trend. Wait for any price rejection to the same direction with the general trend at one of the Fibo Ret level. Entry zone which quite popular are 38.2%, 50%, and 61.8% level. 4. Probability of success will increased if price rejection occurs at the confluence of Support and Resistance levels. ie. confluence of one Fibo Ret level with Support / Resistance area, Trendline, or Chart Pattern. The point is, more confluences are taking places, probability of success for price rejection at Fibo Ret level is higher. Few Examples: Example 1 - 3 for Downtrend case (MA200 sloping down) Example 4 - 5 for Uptrend case (MA200 sloping up) 1. (Normal Retracement) Price reversed to the opposite direction of the trend and rejected down from around Fibo Ret 50%. The downtrend continuation after price rejection tend to be normal and not too deep. 2. (Higher Probability Retracement) Price reversed to the opposite direction of the trend and rejected down from the confluence of 2 resistance: Fibo Ret 23.6% and Resistance Area 110.648-110.771. The downtrend continuation after price rejection tend to be quite deep. 3. (Highest Probability Retracement) Price reversed to the opposite direction of the trend and rejected down from the confluence of 3 resistance: Fibo Ret 61.8%, Major Down Trendline (diagonal red line), and Resistance Area 110.275-110.346. The downtrend continuation after price rejection tend to be very deep. 4. (Higher Probability Retracement) Price reversed to the opposite direction of the trend and rejected up from the confluence of 2 support: Fibo Ret 38.2% and Support Area 110.648-110.771. The uptrend continuation after price rejection tend to be quite high. 5. (Normal Retracement) Price reversed to the opposite direction of the trend and rejected up from around Fibo Ret 61.8%. The uptrend continuation after price rejection tend to be normal and not too high. Happy Trading...
Education
by arieg1985
1
How to Use Fibonacci RetracementsHow to Use Fibonacci Retracements I'm back with another educational post after receiving a lot of requests and today's lesson is on how to use Fibonacci retracements. I've used a recent market example with NZD/USD to break this down for you. Let's get straight into the finer details before breaking down each section of the chart shown. Fibonacci retracement levels are amongst the invisible levels of support and resistance within the market, providing objective price reference points. Essentially where the flow of buying and selling is likely to change. The main Fibonacci retracement levels used are shown below. Fibonacci Ratios 0.382 (Indicating a strong trend) 0.50 0.618 Where can I find the tool? You can find the Fibonacci retracement tool in the chart section by going to your left sidebar, third section down and the icon is three horizontal lines. Upon your first use of this tool, you will want to edit the settings and add in the three ratios stated above if they are not already there, make sure you tick the boxes to use them. How do I use it? To apply the tool on your charts click from high to low to measure the full price swing. OR Draw in your tool from low to high depending on the market situation. Breaking down the charts If you're basing your trades off Fibonacci retracements they work at best in trending markets, but if it's used as a part of your strategy it can be effectively applied to any or most types of markets. Now let's look at the chart for recent examples of price reversals using Fibonacci retracements. If you look at the example on the left-hand side, I measured from high to low and price hit bang on the 0.618 retracement level. Your question right now will be... How did you know it was going to reverse? I personally go off the retracement level that is causing the most activity within the market. Have a look at price history and see what is happening at the particular level, is there a lot of stalling? Is it a key support or resistance level within the market? If so, price will more than likely reverse there in comparison to the other retracement levels. To validate the reversal you will, of course, want to analyse price action, what are the candlesticks telling you? Any signs of indecision or stalling at a certain level will help you make a solid choice whether to take the trade or not. Now let's take a look at the right-hand side, this time I have two examples (again I measured from high to low). You can see from the top example price pulled back to the 0.382 and 0.50 retracement levels not once or twice but three times before dropping. Indicating a very strong resistance level! The bottom example is a similar situation, price spiked up above the 0.50 retracement level (all candlesticks closed below) before heading in the opposite direction. To round of this educational post, I hope you found this extremely useful and you can now use Fibonacci retracements in your own trading. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
25
Sell GBPJPY (educational)Sell GBPJPY (educational) "kalbotical retracement confluence 1" 1. Up Trend line broken 2. down Trend line formed 3. second leg has a strongest momentum so possible third leg for some kind of 1-2-3-4-5 structure ) You can catch momentu e.g with Squeeze Momentum Indicator 4. Look left for S/R zone 5 perfect Fib level - .618 6. Kalbot RSI shows the fastRSI line in the overbought area, so there is a possible end of retracement 7. Top predictor (or your mentor) loves this structure too 8. Plan your trade trade with one of possible strategies . e.g countertrendline break ( 9 ) strategy StopLoss 30 pips above U-turn Take profit :- 100 pips (3:1 trade) :- or -0.25 Fibs extension (10) :- or Look left for S/R level (11) 12 trade your plan
Education
by quql
1
My latest Short Term Sell Trade Explained #forex In response for your requests guys to explain the rational behind the live trade we took on GBPCHF. Here is the explanation. On the left hand side daily chart, the price started the bearish behavior on the 78.6 retracement level for the overall bearish wave as shown on chart. As it formed two major bearish shooting star candles. That was not enough for me to initiate the trade so i moved to the lower time frame(4-hour) for the final confirmation. The price has indeed broken back below the prior high at 1.2868 and below the hanging man candle. That was accompanied by bearish divergence on RSI and that assured that the trade is a high probability one. If you were following my updates on the channel, you would know that i put a limit short order as shown on chart. The targets was just reached minutes ago for 157 pips gain. Adding to my account 4.37% gain this month. Best of luck and keep posted.
Education
by Technician
121
USD/JPY - 2618 Trade Explained USD/JPY - H1 - 2618 Trade Explained Having had a double top and now approaching a retracement back into the 61.8% Fib level, we can now look for reasons to short the USD. Unlike patterns we can't just place BUY or SELL orders in advanced. Once we have completed the rules of engagement below, we are looking for confluence within a certain area that all coincide. This in the long term will give us a better success rate. Rules Of Engagement 2618 - Double Top - Break below Neckline / Support - 0.618% Fibonacci retracement - Stop loss above double top - Target 1 at 38.2% Fibonacci - Target 2 at 61.8% Fibonacci Good luck.
Education
by UnknownUnicorn180388
15