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Retracement

How to use different types of Fibonacci in TradingViewWave Relationships and their relation by Fibonacci Ratios are among the most helpful tools for target prediction. There are different types of Fibonacci and different tools with different names in different software packages. This may make users somehow confused . Here, we try to shed some light on various mostly used Fibonacci types and explain their usage for target prediction. Also we explain their related tool in TradingView and their way of implementations. As shown on the chart, there are four main types of Fibonacci : 1- Internal Retracement 2. External Retracement (Extension) 3. Expansion 4. Projection Before going through details, it is worth to mention that knowing wave relationships is a key to implement Fibonacci tools accurately. Different types of wave relationships is beyond the scope of this publication. Here, for simplification, we show most simple type of wave cycle which is ascending complete cycle with one 5 leg up impulse and one abc form of correction . Also, we try to explain more typical Fibonacci Ratios for target prediction and skip less often ones. 1. Internal Retracement: This is simply for calculation of the amount of correction in the main trend. It means we can predict where a counter trend correction may end. As shown on the chart, it can be used for target prediction of wave 2 and 4 in an up trend and also wave B in a down trend. It can also be used for calculation of end of wave C which is the end of correction of whole up going wave. Green arrows on the picture show the direction of using this tool which is "Fib Reracement" in TradinView. For example, we put first point at the start of wave 1 and second point at the end of this wave for obtaining possible targets for wave 2 and so on. Wave 2 can end at 0.382, 0.5, 0.618 and 0.786 Fibonacci Retracement levels of wave 1. Fibonacci levels at which wave 2 ends can send us a signal about the amount of next waves. This is again beyond the scope of this publication. Wave 4 can typically end at 0.382 or 0.5 Retracement of wave 3. Less and more amount of Retracements are also possible, but those make wave relations more complicated and does not match with our simple shown example. Wave B typically corrects 0.382 , 0.5 and 0.618 of wave A in a simple zigzag correction. More Retracements signals for more complicated corrections e.g a flat correction. Wave C Retracement levels are similar to wave 2 in shown wave cycle since it is end of a larger degree wave 2. 2. External Retracement: This Fibonacci which is also called " Extension" can be used for calculation of end of wave 3 or 5 in an up trend and end of wave C ( which is end of whole correction) in a down trend. We have same tool as internal retracement in TradingView however ,unlike internal Retracement, an extension should be drawn from a high to a low in an up trend and vice versa as shown by green arrows on the related figure. Wave 3 Fibonacci Ratios by extension depends on the amount of wave 2 correction. For example, 1.618 or 2.618 extension of wave 2 can be the target for wave 3. Robert. C. Miner has proposed a very useful table for targets using external retracement. Wave 5 typical targets are 1.272, 1.414 and 1.618 extensions of wave 4. This ratios are also the same for calculation of end of wave C. 3. Expansion: Based on my experience, Fibo expansion is most useful when we have over extended waves for example over extended wave 3. In this case , 1.618 or even 2.618 Fibo levels can be the typical targets. Related tool in TradingView is Trend-Based Fib Extension. Please note that this tool in TradingView is a three point Fibonacci while expansion is two point Fibonacci tool. Therefore, Implementing this tool for obtaining Expansion levels is a little tricky. For example, for calculation of wave 3 we should put first point at the start of wave 1 and double click on end of wave 1. There are also more details in implementing Fibo expansion for example we have different types of Fibo expansion. We can skip details here to keep this publication as simple as possible. 4. Projection: This is the only 3 points Fibonacci that we have. Some software packages call this Fibonacci as Expansion !!. Its related tool in TradingView is Trend-Based Fibo Extension. It is a very useful tool for calculation of end of wave 3, 5 and C. Again green arrows show how to use this tool . For example, For wave 3 target calculation we set first point at the start of wave 1, second point at end of wave 1 and third point at the end of wave 2 or start of wave 3. 1.618 and 2.618 Fibo levels are typical for end of an extended wave 3 when using Fibo projection. 100 % Projection of wave 1 from low of wave 4 is a typical one for end of wave 5 target. Also 0.382 or 0.618 projection of wave 1-3 from low of wave 4 is a helpful ratio for wave 5 target calculation. For a wave C, most common projection is 100 % of wave A from top of wave B. How to make a Potential Reversal Zone ( PRZ) : We can make our potential reversal zone stronger by combining all proposed tools . Take another look at the figures. What can we see? yes. We know four tools now for calculation of end of wave C. Suppose how strong a possible buy zone can be when 4 different tools suggest it as potential reversal target ! Hope this to be helpful. Please do not hesitate to ask questions if you feel need to ask. Good luck every one.
NASDAQ:TSLAEducation
by SaeedSajedi
3
Shark Complete 🦈EUR/USD - Shark complete with a 4H BOS, price is sitting in premium zone for buys, i was shorting this and it broke the last demand zone before structure, now i'm looking to take this long up towards premium sell levels for continuations! (Be careful with lots as this is a retracement) Let me know your thoughts! |* Disclaimer ** These ideas I never trade until the end target with my initial lots, I focused on high probable entries with higher lots and use a specific partial taking strategy giving me a very high win rate and take most of my profits very early, I only leave a small % of my capital to run the entire trade. On the flip side im constantly monitoring LTF momentum and will close early if things change, these analysis's are for research purposes only.
Long
by ProFxAI
UNVR broke the trend lineAfter broke thre trend line with high volume, the price got exhausted and need more demand to continue the new trend after reversal. So thre price will retrace. There are two areas of demand. For this case, I will pay attention to the price action instead of putting limit order. If the price show reversal pattern (can be pin bar or engulfing candlestick) in the first demand zone (rectangle), I will buy. If the price still continue the pullback, I will set the limit order in the second demand zone (the lower rectangle).
IDX:UNVRLong
by albusthami
StoneCo (4H) - short term Bullcase // could it fill the GAP ?Hello traders (and some investors ?), As you could notice, most of high-growth and tech stocks are in bear market for last several months. While huge part of them formed abc corrective waves down. StoneCo formed impulsive wave (of 5 subwaves) DOWN =that´s not good sign because impulsive waves are never alone. So my thesis how to play this stock is this.: - You can see there is a GAP around 27-29usd which is around 0.238 retracement. (possible 140% gains). Fundamentals: -- there is huge risk, as it is Emerging market in Brazil. - A lot of competitors(like NU bank) with much bigger backing (Berkshoire invested in both, also Softbank, ...) ++ StoneCo grow very fast in terms of AMU and revenue. +/- management hired some advisors which could help to restruturalize business (and also increase expenses :( )... +/- Stone aquired some businesses which was very good step, but I really dont understand why they bought stake in Banco inter (AT THE TOP !!) = seriously guys, they should consider hiring at least average trader / Technical analyst for this kind of aquisitions / investments... +/- stock price correlates highly with other Groth/tech stocks (check my Fintech/ecommerce analysis ... seems like Stoneco correlates more with Chines market than SaP). So fundamentally its 50/50 and depending on many variables = long term it could be nice investment if you are willing going to the moon or to zero.... Right now I´m not willing take so big risk to hold it forever, so my target is around 28 usd. if we form wave C of correction UP, I will sell everything and watch from side. Take care, strade safe and enjoy the ride. ;)
NASDAQ:STNELong
by Longevity_Contrarian
OUTLOOK OF AMC ENTERTAINMENT HOLDINGS (AMC)HEY GUYS, I HOPE YOU'RE ALL DOING WELL. this is my general outlook on the market i am currently bullish on the stocks market and looking to buy the dips as far as i can see a retracement is due in both indexes and some profit taking so that happens this is my plan of attack keep in mind that this is an idea a plan in a uncertain chaotic environment out of multiple plans to be certain IF anything happens that changes the fundamentals of this idea, i will update. please note that this is not financial advice. do your own research and use this information as conformational biase on top of your own analysis. like for support!!!!
NYSE:AMCLong
by zeyankhan1318
BTC Under extreme pressureHello traders! In the past few days Market rose up and every coin is at least 50% up. If we talk about BTC it is 40% up from Feb low and if we look at Jan lows it is about 45% up and at the reaction zone, it will be up exactly 50%. There is a chance that we will see a hard dip from the reaction zone. BTC was inside a rising channel since 14 march now it's broken and it broke towards the upside, BTC can not outrun the rising channel it is important for BTC to break it downside before taking any other decision. The downside can start anytime, we have to look closely at the pattern to catch the peak. It can start from 49000 to it can start from the True reversal point which is at 50028. I am afraid that brokers will go greedy and will play their final move and they will take BTC to 36K within no time. It can be a very hard crash with a 15/20% crash in a day. If the market formed a pattern below the rising channel then there is a chance buy trades are safe, if BTC failed to form a pattern below the rising channel then RIP to the buyer because you will see a glimpse of what brokers can do in this non-regulated market. One more thing I must add is that after a dump if you hear bad news and blame a dump on bad news then you are wrong. Don't forget to hit the like button and follow to stay connected.
Short
by Aadil1000x
3
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by MOHAMAD-KL
4