The Ins and Outs of Fibonacci patterns, fans and retracement levels - Part 1 0f 2

One tool that many traders and a majority of investors do not include in their investment or trading decisions is Fibonacci analysis. Though some have not been exposed to this type of analysis, many others dismiss it when they find that it is based on the work of a 12th century mathematician or because they think it is too complex. Leonardo Pisano, nicknamed Fibonacci, was an Italian mathematician born in Pisa in the year 1170.
From a trading perspective, there are many basic and advanced ways that Fibonacci numbers can be beneficial to the trader. Suffice it to say that this series of numbers and the relationship of one number to another in the series have been found throughout nature. The most notable relationship can be found by dividing one Fibonacci number by the next one in the series, which will give you the “Golden Ratio” of 0.618.
There are two primary ways to use Fibonacci analysis in trading. One is to identify or confirm support or resistance levels, and the other is to help identify price targets. Often times, a trader will look at a market and realize that when they were not paying attention, a significant level of support or resistance was broken and the market has already moved significantly. Fibonacci analysis can be very helpful in this situation.
If you ask any technical trader which charting tool they rely on the most, Fibonacci retracement would probably come fairly high up on the list. This method is used by many types of market participants, from individual technical traders through to analysts at the world’s largest financial institutions such as Citigroup.
Fibonacci Fan lines are trend lines based on Fibonacci retracement points. Rising fan lines extend up from a trough and pass through retracement based on the advance. These fan lines can then be used to estimate support levels or potential reversal zones. Falling fan lines extend down from a peak and pass through retracements based on the decline. These fan lines can then be used to estimate resistance levels or potential reversal zones.
Class 1 - We will learn to understand the background and the development of the Fibonacci sequence. We will begin to see how these numbers have developed into a sequence used by traders. These magic numbers used properly are the basis of the Fibonacci retracement levels. Fibonacci retracement levels are calculated by using the ratios obtained through a Fibonacci sequence. In essence these are widely assumed to be better entry points in the direction of the trend, compared to other levels.
Class 2 - This class will emphasize the use of retracement levels for support and resistance and the addition of Fibonacci fans to predict future price levels. Fibonacci Fans use Fibonacci ratios based on time and price to construct support and resistance trendlines; also, Fibonacci Fans are used to measure the speed of a trend's movement, higher or lower. Fibonacci Fans, otherwise known as Fibonacci Projections, share some kind of similarity to Gann Lines and Angles.
Fans displayed on the charts by following the same principles of drawing the Fibonacci retracement points: drawing a trendline from one price extreme to another, either from a peak to a trough, or from a trough to a peak. The trace also produces a vertical line through the second price extreme level. Three trendlines then fan out from the first price extreme point, passing through the vertical line at the 23.6 %, 38.2 %, 50.0 %, 61.8 %, 76.4%, or 100% Fibonacci levels.

[@dabuggerman]

Thank you Barry. Made clear some things that were confusing me..

[@alihemmati22]

Thank you for doing this Sir. very well explained. Thank you once again and now I will be moving to part 2.

[@kickpublishing]

Thought this was total mumbo jumbo - until I started drawing it on charts and now I feel like I've seen through the matrix

[@motivationrus1822]

Hello @President of The Internet, hope you are doing well with the Fib Retracement tool; do you also have access to it under analytic studies on your platform? My Son uses Fib Retracement levels for Support, Resistance, Entry, and Stop Loss; he is quite profitable but he doesn't draw the Swing High and Swing Low manually, they are applied to his charts by just a click of a button. He applies the levels to both the Daily chart and the Intraday 2 minute and 3 minute time frame. Take care!

[@davidisrael358]

thank you. you are truly honest and sincere in your analysis

[@nothankyou5524]

Very nicely done. Thank you. Glad I found this, although I'm late to the party...Both liked and subscribed....

[@feetnincheees]

Superb presentation Barry, very many thanks, Nick

[@psxbr60]

They give very valuable info to be explained by someone who couldn’t explain how to boil an egg if his life depended on it.

[@nothankyou5524]

I would not say I agree, unless you meant "explained to someone"

[@orangequant]

thank you- very helpful

[@patricklucas8008]

Thank you for taking the time out to teach us.

[@gabrielv.4573]

Nice presentation

[@simplemind7]

Take S & R from the higher time frame, say the Daily and 4hr along with fibonacci confluence on the lower TF with trendlines 'confluence'; stochastic on the daily must agree with the 15 mins for momentum either to buy or to sell--true.

[@jeremy0437]

So pretty much I would look for support and resistance on the Daily/4hr Frame then look for Fibonacci Setup on the Hour time frame, All along I should be taking into account the overall trend of the market, then look for a stochastic setup on the 4hr or 15 minute I am confused could you help?

[@ArtMaknev]

Very well informed, thank you!

[@joeegbert9808]

good video it is .

[@eghbalyarmahdawi1259]

thanks a lot

[@CentsTwo]

The book Fibonacci Retracements: Explained With Real Chart Examples For Trading And Investing Is also good and straight to the point for teaching and practicing Fib retracements with many examples from all markets.

[@nothankyou5524]

Nothing beats the combination of auditory and visual learning, in my opinion. But, that's what makes the markets move, eh what?

[@vineethavnair5754]

Could you please tell who is the author of the book ?

[@kplo6173]

Thank you sir for share your knowledge.

[@craig221]

Thank you for this tutorial

[@renishaxhia5025]

very impressed

[@garakeda]

This is really great 👍

[@sitthapromwasphornsaran5736]

Impressive.

[@deepakm726]

Barry sir, thank you so much your teaching is good and understandable.. God bless you sir...

[@140moon]

Thanks

[@vineethavnair5754]

Thanks for the beautiful class. Is there any chance to attend your class online ?

[@lloydieism]

Good

[@samuelbell3281]

They work because they are self- fulfilling prophecies.

[@galina450]

It's interesting to notice that Fibonacci numerical sequences start from 01 but rabbits formula starts from two rabbits. Also interesting to know will the sequence break if rabbit dies?

[@a1pwn]

38 and 61 are the absolute worst, because all stoploss orders are above and below them and therefor the markets take you out

[@d.j.2803]

We must understand that there FIB levels and the BREAKS are the trade.

[@christianmora6398]

Wasn't the retracement drawn on the euro/usd drawn backwards?..

[@LandOffConfusion]

Yah lmao

[@psxbr60]

Agreed

[@christellevidal5447]

I am among the persons who learn't trading the hard way. at first i tried trading myself but ended up losing a lot of money. but now I'm seriously thinking about quitting my day job,lately i was able master a risk management strategy for 5 weeks created by *Dmitry Vladislav* called the *Blended Model strategy* I have been making $1450 daily using this strategy. Most traders in France earn thousands with it daily. Google it if you need more info

[@pedroewert143]

If its down this way you can see the most likely retracement but also see the extensions for taking profits - because we are in an uptrend its more likely to extend that range. The other way to draw the fibs would give you the extensions to the downside, if you expect it would even go further, but thats more applicable in a downtrend or maybe if you suspect a reversal.

[@avanzifernades]

very good

[@Erez.Levi.Stocks]

first i will say this is amazing video, thanks. secund i have a question: I am currently a stock analyst at weekly intervals and there has been a definite upward trend for several months There were three fixes throughout this trend First Amendment stopped at 61.8% Second fix stopped about 50% Third Amendment Held at 38.2% Could it mean something to us? Many thanks in advance

[@nothankyou5524]

Only several months? Are we living in different worlds?

[@Erez.Levi.Stocks]

@@nothankyou5524 doesn't matter thank you and keep with your good job

[@ansonpeterson6004]

As you can see, there is much more to your trading system that simply deciding on whether you prefer to trade the SQB-AMAC , Vwap, or breakout , whether you like to trade the one-hour chart or the weekly chart. It is important for you to decide not only what you will trade, but also how you will trade it, and to define the precise rules you will use to trade your system. Defining all these variables for your system up front will help you down the track when you have to endure difficult times. Drawdowns, losing streaks, and bad luck are all more manageable when you have a well-defined trading system in front of you. The SQB-AMAC strategy is completely rule based which one of the reasons it is highly profitable . Learn this strategy from Yuril Zubong because it will change your life

[@Jackson_heights94]

🙏🙏🙏

[@prncegloww9337]

"Then the software will magically put the fibonacci for u"😂

[@MrCurtis61]

better for forex or just as good for futures?

[@CentsTwo]

good for all markets, charts, and timeframes. Preferable to have high liquidity, low to mid volatility, and not in a very short or long time frame, 15min - 1 week range. Perhaps daily is best most would argue. The book Fibonacci Retracements: Explained With Real Chart Examples For Trading And Investing Is also good and straight to the point for teaching and practicing Fib retracements with many examples from all markets.

[@haypapa]

u got a signal service sr? or EA

[@CentsTwo]

The book Fibonacci Retracements: Explained With Real Chart Examples For Trading And Investing Is also good and straight to the point for teaching and practicing Fib retracements with many examples from all markets.

[@praveshsharma3571]

Sir on a monthly chart if it underline has retraced 100% and reached 0 what your views shall it can be good buy zone and if ot breaks the 0 % will it go in bear mkt.

[@deepshah8421]

Can someone please tell me what time frame is the best for using fibonacci strategy?

[@MrCurtis61]

Always start with Higher time frame to get Context Daily then drop back to 4 hr. and 1 Hr and if you trade off of 30 or 15 it will match up.

[@CentsTwo]

most would say daily, The book Fibonacci Retracements: Explained With Real Chart Examples For Trading And Investing Is also good and straight to the point for teaching and practicing Fib retracements with many examples from all markets.

[@TheAnalystradioprogram]

“We don’t know”

[@turbospeed08]

Can you explain the thumbnail?

[@Jay-kl5oy]

30 minutes to 1 hour? But stocks have 1 day 1 minute to 1 day 5 minutes and so on. What time frame is ideal for stocks?

[@mfgallonjaust7171]

Jay 2019 4 hours , 1 day

[@ChandraShekar-gx6kj]

big players trade Fibonacci levels retail traders get stopped out at these levels . smart money enters fib support and exit at fib resistance

[@d.j.2803]

Wrong. I am thinking about putting up my own videos that show actually HOW the markets function.

[@jeremy0437]

@@d.j.2803 Could you explain further?

[@thamellathamella863]

I love maths

[@lawrencenardella8991]

nerd

[@prncegloww9337]

Why they work ? We don't know😂 "But they do" lmao

[@moonfire5069]

It's a self fulfilling prophecy. At least in stock markets. It works because lot of traders are sitting and drawing their fibs and placing orders at these levels. The fib traders make the Fibbonaci work.

[@gregm9976]

how was fibonacci developed by anyone? i thought it was something nature does, and people just discovered it

[@kaylakaybabyyy]

Greg Mcnair Yea and then people just discovered how to apply it mathematically to trading which is pretty cool I think

[@hawkeye791]

He studied the pyramids it's been around we'll before him

[@hankdunckel375]

It’s called the Fibonacci Retracement. If you’re not familiar with the philosophy, it is based on a series of numbers developed by Italian mathematician Leonardo Fibonacci in the 12th century.

[@CentsTwo]

The book Fibonacci Retracements: Explained With Real Chart Examples For Trading And Investing Is also good and straight to the point for teaching and practicing Fib retracements with many examples from all markets.

[@castellamedia]

Could these numbers work because traders expect them to work due to knowledge of fibonaci levels and buy in at them.😂

[@PokerOCD]

I've thought about this as well, it's almost like a large group of traders are unintentionally colluding to buy and sell in unison

[@cesarloya4796]

In a way it is a self fulfilling prophecy since so many people are looking at the same levels you are. So in short answer, yes, they're partly due to traders making the levels develop.

[@xfactorb25222]

Too easy of an answer. Fibonacci was around before stock markets... and how do you explain all of the nature that follows it? Everyone ( most) know trend lines. and support and resistance... except, these are broken all the time (on purpose). It's just weird honestly.

[@bretthall6207]

gotta love the mentality though. look at eurnzd at the moment. bouncing off 66% levels all over the place. even targets of 1.66% are being respected. 66% is the new 61.8% to try to throw us novice/retail traders off and stop us out. luv fibs

[@godsick]

can't even read what your slide says, if we're in 2018 and it says it was created about 1300 years ago... then it wasn't developed in 1200's clearly

[@mihaipelmus1962]

hihi

[@godsick]

hey you, what up!

[@DjRayFX]

DJ GodSicK lol

[@DjRayFX]

😪

[@rupamnath3961]

♨️♨️♨️Fibonacci sequence was first created by a mathematician before 1300 years ago in India. Another fact is that ZERO (0) was discovered by an Indian astronomer cum mathematician named Brahmagupta in 628 💢💢💢