Wysetrade
This video teaches traders how to use Fibonacci tools correctly by combining them with price action and support and resistance concepts. Fibonacci levels represent areas of value within a trend and can act as support or resistance. Combining Fibonacci levels with support and resistance in areas of confluence can increase the chances of success and higher profits. Examples of trade setups using Fibonacci levels are demonstrated.
Mastering Fibonacci Trading: A Comprehensive Guide
Introduction
Fibonacci trading is a popular tool among traders, but many use it incorrectly. This often results in losing trades. In this video, we will show you how to correctly use Fibonacci tools in your trades.
Using Fibonacci with Other Price Action Concepts
Fibonacci is just like any other trading tool; it is not magic. Always combine it with other price action concepts to increase the quality of trade entries and exits. Do not use Fibonacci on its own.
Fibonacci Retracements
In an uptrend, the 50% Fibonacci level represents a deep pullback and is called “good.” The zone between the 50% and 61.8% levels is called “great” because it represents an even deeper pullback. The 61.8% Fibonacci level is called “best” because it represents a very deep pullback in the opposite direction.
In a downtrend, the same concepts apply, but in reverse order. The 50% level is good, the zone between 50% and 61.8% is great, and the 61.8% level is best.
Fibonacci Retracements as Support and Resistance
Fibonacci retracement levels act as support and resistance, representing areas of value within a moving trend. These areas present trade opportunities, creating momentum for your trade.
Treating Fibonacci Levels as Areas and Not Solid Lines
Fibonacci levels should be treated as areas, not as solid lines or numbers. Use Fibonacci levels in combination with price action – not on their own. Your trade setup does not have to be a picture-perfect setup.
Using Fibonacci with Candlestick Price Action
Identify your impulse moves and corrective moves. Impulse moves are runs of higher highs and higher lows, and corrective moves are pullbacks. Use the Fibonacci tool to identify areas of value within moving trends.
Combining Fibonacci with Support and Resistance
Combining Fibonacci with support and resistance gives you higher-quality trade setups, increasing your chance of success and profits.
Conclusion
Using Fibonacci correctly with other price action concepts offers a powerful tool to traders. Understanding how to use Fibonacci retracements as support and resistance, along with treating Fibonacci levels as areas rather than solid lines, are key to succeeding with this trading tool. Combining Fibonacci with support and resistance will also increase the chances of profiting from trades.
