Fibonacci retracement points are popular in trading and appear in many aspects of nature. We learn how to add and use the Fibonacci tool and strategies, but it should not be used on small moves on lower timeframes. A recommended broker to trade with is Hankotrade.

write 1000 words and add headings article based on this youtube scriptEven though it may look like the market goes  up and down randomly the points at which the   price changes its direction are actually  usually Fibonacci retracement points. Fibonacci is a mathematical sequence that has  fascinated mathematicians for centuries. It is   A sequence of numbers where each number is  the sum of the previous two numbers. So an   example of this would be 0 and 1 making 1, 1  and 1 making 2, 2 and one making 3, and so on.   Some of these numbers may seem familiar because  they are commonly used as values for indicators. What makes Fibonacci so interesting is that it  appears in many different aspects of nature,   from the spiral pattern of a seashell  to the shape of a humans face. In the trading world, Fibonacci retracements  and extensions are popular tools used to   identify potential price levels where a market may  experience support or resistance. In this video,   we will showcase how the Fibonacci indicator  works, how it can be applied for trading,   and profitable strategies to incorporate it with. Let’s first go over how we will add the  Fibonacci tool to the chart. to do this we   will first need to head over to the left side  of the screen where the toolbar is located.   Now click on the arrow to unfold the hidden  tools and select the Fibonacci retracement tool.   Once you have done that, you will be able to  click anywhere on the chart to add the Fibonacci   retracement to the chart. If we now double  click on it we will be able to see the settings.   The numbers you see are the levels or zones  that are usually referenced when using the   Fibonacci tool. The numbers might seem random  but they are actually based on something called   the golden ratio. We can find the golden ratio  by taking a look at the previously shown number   sequence where the next number is the sum of the  two previous numbers. If we divide any number by   The previously shown number it will be equal  to 0.618, this is known as the golden ratio.   However if we divide the number by the second  number to the right this will result in 0.382.   In fact, all of the numbers on the  Fibonacci tool except for 0.5 are   Derived from a mathematical calculation  involving the Fibonacci number string. Now that we know exactly what these values mean   let’s take a look at how  we will be using the tool. You have probably noticed that the price  action moves in wave-like patterns.   This is why we will be plotting the  Fibonacci whenever a new wave is created.   To be able to spot the end of the wave we  will be looking for a point in the price   action where the price switched trends. as  you can see here, instead of making lower   Lows the price started making higher lows,  showing us that the trend has been broken.   We will be plotting the Fibonacci retracement from  the lowest point to the recent major swing high.   Since we wan’t to know the general levels  it does not matter if we draw it from the   Wicks or the close. As you can see if we  extend the Fibonacci retracement into the   future the market uses the Fibonacci levels  as support zones. It will also usually be the   case that the price reverses and continues  the previous trend while it’s in the golden   Zone which is between the 0.5 and 0.618 levels.  As you can see here this was indeed the case. Since we won’t be using the  Fibonacci levels outside of 0 and 1,   let’s disable these levels to  make the chart less cluttered.   To do this simply double click on the  fibonacci and uncheck the unwanted levels. To use the Fibonacci in bearish markets  we will first search for an uptrend.   We will be looking for the exact point at which  the trend switched to a downtrend. As you can see   This occurred here, this is because instead of  making higher lows the price made a lower low.   Now let’s plot the Fibonacci on the chart.  We will be plotting the Fibonacci retracement   from the highest point of the uptrend to the  most recent major swing low. As you can see   The price made a pullback to the golden zone  before it continued in the downward direction. The second way of drawing the Fibonacci  retracement is a little less complex.   for this method we will first need to identify  and determine what the dominant trend is.   In this case we see that the dominant trend is  bullish. Secondly, we will need to identify the   major swing highs and lows, in this case, we see  that these occur here. Now select the Fibonacci   retracement tool and draw it from the swing low  to the swing high. Keep in mind that we will   Draw it from the swing high to the swing low if  the trend were bearish. As you can see with this   strategy we eliminate looking for a reversal  and instead just look for a dominant trend. Before we take a look at strategies to  use the Fibonacci with, let’s first go   Over some situations where it shouldn’t be used. To use the Fibonacci tool correctly it’s  important to understand that it should   not be used on small moves on lower timeframes.  Here we see an example of this, we are currently   On the 1-minute chart and can see that the  trend has switched from bearish to bullish.   However, if we take a close look at the trend  we can clearly see that the trend was short   and the price action didn’t make large moves  during the rally. For the sake of the example   Let’s ignore this and see what would happen if  we were to draw a Fibonacci retracement here.   We will be drawing the Fibonacci from the  lowest point to the recent major swing high.   As soon as we extend the Fibonacci into the future  we can see that the levels of the Fibonacci no   Longer provide consistent support. This is  because the levels are so close to each other.   That’s why it’s important to not use the Fibonacci  retracement on small moves with lower timeframes. Now that we know how the Fibonacci retracement  tool works, how to use it, how to read it and   When we shouldn’t use it let’s take a look  at a strategy that the tool can be used with. But before that, If you are looking for a  broker that has extremely low commissions   and spreads then check out Hankotrade. The best  broker to trade Forex, indices, commodities,   Or crypto. They have live chat support so that  any questions you may have can be quickly and   easily answered. One of Hankotrade’s most  prominent promotional offers is the Matching   Deposit Bonus which can be claimed when you  open an account with Hankotrade. Sign up   Via the link in the description to register with  Hanko-trade and get access to all of these perks! For this strategy we will first need  to add a moving average to the chart.   To do this head over to the indicator search tab  and search for the exponential moving average.   Select the indicator made by tradingview  and add it to the chart. Now navigate   to the indicator settings. Here we will be  changing the length of the indicator to 200.   Finally we will also be changing the colour  of the moving average to make it more visible.   That was all that we needed to do, now let’s  take a look at when to enter into a buy position. Firstly we will need for the trend to be bullish.  This means that the price must be making higher   Lows, it’s also important for the price action to  have gone above the exponential moving average.   If this is the case we will look for  the recent major swing high which we   can see occurred here and the recent major  swing low which occurred at this point.   Now that we have spotted the swing highs and  lows let’s draw the Fibonacci on the chart.   To do this let’s select the Fibonacci tool, after  that we will be drawing the Fibonacci from the   swing low to the swing high. Now we will need  for the price action to pull-back into the…