The video discusses the use of Fibonacci retracement levels in trading and highlights the importance of understanding price action and institutional footprints at these levels. The speaker emphasizes the need for knowledge and strategy in trading and offers a free training program.

An Introduction to Fibonacci Retracement Levels
Have you ever heard of Fibonacci retracement levels? In this article, we’ll be discussing what they are and how they relate to trading. If you’ve been curious about this technical analysis tool, we’ll clear up any confusion you may have by the end of this article.

Defining Fibonacci Retracement Levels
First things first, what are Fibonacci retracement levels? Essentially, these levels are a fancy term for support and resistance. They’re derived from the Fibonacci sequence: 1, 2, 3, 5, 8, 13, etc. Without getting too deep into the math, these levels are percentages of a move in price. The first level is a 23.6% retracement, followed by 38.2%, 50%, and 78.6%. These levels are used to identify potential buying or selling opportunities.

The Problem With Fibs
While Fibonacci retracement levels can be useful, there is a catch. If you cannot read price action, identifying whether a level is a continuation of the trend or a trend change is a challenge. Without this knowledge, following these levels blindly can lead to significant losses. In addition, it can be tough to know which level to choose among the four. The truth is that applying this strategy without a deep understanding of PRICE is like picking up pennies in front of a steamroller.

Learning How to Trade
The key to successfully using Fibonacci retracement levels is first to understand how to trade. Instead of trying to follow an analysis tool blindly, it’s essential to recognize price action and identify whether institutional investors are buying or selling. This knowledge will help you recognize a qualified institutional reversal (QIR) or qualified continuation. QIR happens when the institutions are buying at a key level, and QIC occurs after a reversal has formed, and the institutions have taken significant buy-side risk.

The Need to Develop Strategies
Once you have a thorough understanding of how to trade, you can apply the strategy of your choice. However, having a strategy is only a small part of the equation. It’s crucial to know how to read price action effectively, recognize institutional footprints, and identify A+ setups. A good strategy must be complemented with knowledge, analysis, and experience.

The Importance of Knowledge
Fibonacci retracement levels are just one of many technical analysis tools. Still, they’re widely used because they’re easy to apply. However, without adequate knowledge about price action, support, and resistance, attempting to use these levels for trading may not be effective. If you want to use Fibonacci retracement levels and make them work for you, develop your trading knowledge first.

Final Thoughts
Fibonacci retracement levels are a popular technical analysis tool that can help identify potential buying and selling opportunities. However, without a deeper understanding of trading, the use of these levels may not be effective. The key is to first learn how to read PRICE, recognize institutional footprints, and identify critical reversal points. Once you’ve mastered the basics, you can develop your own strategies and use these levels to your advantage.