FIBONACCI TRADING MASTERCLASS - FIBONACCI RETRACEMENT. | Daksh Murkute | Skillshare

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FIBONACCI TRADING MASTERCLASS - FIBONACCI RETRACEMENT.

teacher avatar Daksh Murkute

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

13 Lessons (1h 22m)
    • 1. Introduction

      1:59
    • 2. History of Fibonacci

      5:47
    • 3. How does the Market works?

      5:23
    • 4. Understanding Highs and Lows

      8:04
    • 5. How to Draw Highs & Lows

      6:28
    • 6. How does the Market Moves?

      6:39
    • 7. What is Fibonacci retracement?

      6:00
    • 8. THE STRATEGY

      7:38
    • 9. Fibonacci + Confirmation #1

      8:09
    • 10. Fibonacci + Confirmation #2

      8:13
    • 11. Fibonacci + Confirmation #3

      9:47
    • 12. Trade management

      4:59
    • 13. Risk Management

      2:50
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About This Class

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Welcome to Fibonacci Trading Masterclass 
For People Who Don't know me - My Name is Daksh and I am a Professional Investor and Trader. 
I trade and invest in Forex Stocks and Cryptos. 
I have been doing this from the past 9 years and I have helped more than 20,000+ People transform their financial fate. 
I am also the Founder of ForexMonopoly, Forex Inner Circle, Recession Rich, Cryptos Monopoly and Investors Monopoly 

This is not just any other Fibonacci course. This Advance Fibonacci Course Consists of Real Knowledge, Real History, Real Testing and Real Practical Results. 
Here is What You Will Learn in This Class 
The Real History of Fibonacci - The History that Very few people are aware of. The untold truths of Fibonacci 
Market Moves - Learn the exact way how does the market moves 
Mechanism of Fibonacci - Learn the real mechanism of the Fibonacci sequence. 
When Does Fibonacci Works and When it Doesn't on Charts? 
The Ultimate Fibonacci Trading Stratregy 
Proper Entry and Exit Plan - Learn how to enter a trade at the perfect point and exit a trade a proper point. 
And for a Very Limited time, I am also going to include a Trade Management Plan and Risk Management Plan for this Fibonacci Trading Strategy.

 
This Fibonacci Trading Masterclass is a complete Fibonacci Trading Course.


Make sure you check it out.

Meet Your Teacher

Hello, I'm Daksh. I am a Professional Forex Trader and founder of forex monopoly . I invest in real estate and travel around the world.

I have helped many people to transform their personal and financial Lives. 

 

See full profile

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Transcripts

1. Introduction: Welcome to Fibonacci trading master glass. For people who don't know me. My name is Dutch and I am a professional investor and trader. I trade and invest in stocks and crypto. And I have been doing this from the past nine years, and I have helped more than 20 thousand plus people transformed the financial freedom. And also the founder of forex monopoly for its inner circle, recession rich kryptonite monopoly and investors monopoly. This is not just any other Fibonacci cuz this, I do ask Fibonacci calls consist of real knowledge, real history, real testing, real practical results. And yeah, as what you've learned in this class, the real history of Fibonacci. The history that very few people are aware of. The untold truths of Fibonacci retreatment, market moves. Learned exactly how does the market moves. Mechanism of Fibonacci learned the real mechanism of the Fibonacci sequence vendors. The Fibonacci works and when it doesn't work on charts, ultimate Fibonacci trading strategy, proper entry and exit plan. Learn how to enter agreed at the perfect point and exit at a perfect point. And for a very limited time, I'm also going to include a data management plan and risk management plan for this Fibonacci trading strategy. Make sure you check out the next video of this class which will reveal the real history of Fibonacci. 2. History of Fibonacci: Back in the second century B.C., when Sanskrit and Hinduism were at the peak in the Indian subcontinent, Hindus were accumulating knowledge like never before and all the knowledge they were accumulating was transferred in the form of poetry as it was very easy for students to remember by the means of poetry. It was around one one five zero Eddie. Somewhere in ancient India, a poet named him Chandra was teaching the student about poetry in Sanskrit syllables that are two syllables. That is a short syllable and that long syllables. So one of the students asked him. The poem consist of a total eight beats to fill up in a poem. How many combinations are there to fill using short and long syllables without blinking an eye? He replies. Add one plus one and keep adding the consecutive numbers. And the eight number you get is the number of combinations you can use to fill up a poem. So let us add and see what it is. So the first number will be one and one plus one will be two, then two plus the preceding number. That is two plus one is equal to three, then three plus the preceding number. That is three plus two. That is equal to five, then five plus three is equal to eight, then eight plus five is equal to thirteen, then 13 plus eight is equal to twenty one and twenty one plus thirteen is equal to thirty four. So we get a sequence. One, two, three, five, eight, 13, 21 and thirty four and thirty four is the number of combinations you can use in upward. Now you might be thinking, why am I telling you all about this. Well if you pay a little attention to the answer, that is the Fibonacci sequence we use to do. Hamit General learned about this in a book called Chenda Shastra, which was written by an Indian mathematician named Benguela around the second century B.C. in that Bengalla also showed how, if we divide any number, excluding the first few in the series by the preceding number, we get the same ratio of one point six one eight. Like if we divide eighty nine by fifty five, we get one point six one. And if we divide 144 by eighty nine, we again get the same ratio of one point six hundred and one point six one eight is nothing but the famous golden Fibonacci ratio. You may be wondering if an Indian mathematician discovered it, then why is it named after an Italian mathematician? Well, two thousand five hundred years later, when everyone in Europe was using an abacus for counting, you know, when I came across this Hindoo way of counting and was blown away by this concept, he then researched about this and urged people to use this new way of calculation, replacing the Roman numbers. And soon after this sequence was coined as Fibonacci sequence, it is believed by the scientist that many things in the universe follow the same Fibonacci sequence from the whole universe to a small seed from the DNA to the cells. Everything follows the sequence of Fibonacci, the length and breadth of DNA, the number of female honeybees to the number of male honeybees in a colony faces both human and non-human, with the mouth and the noses positioned at the golden section of the distance between the eyes and the bottom of the chin on exhibit the proportions of the golden ratio. It is believed that everything in the universe follows the same sequence and the same ratio. And this is also true for the technical analysis. It is believed that the Fibonacci the issue is followed by the price in technical analysis. As a group of scientists and technical analyst right using the ratio in the technical charts, they join the start of the price movement to the end and found that the price most of the time retraces the golden ratio, which is zero point six one eight or one point six one feet. Whenever the price moves in any particular direction, it doesn't move in a straight line. It moves like a ball moves when dropped from stress. When we drop a ball from space, it moves down. Then it jumps a bit in the opposite direction. Then it again moves on and it continues to do the same, the same thing is followed by the place it moves in any particular direction, then it retraces, then it again continues to move in the direction it was earlier. Moving it it is said that when the price that it raises, it retraces the golden Fibonacci ratio and the Fibonacci retracement tool is used to find when exactly the retracement will end and the price will continue its move. The price movement in the chart is nothing but the representation of the movement caused by human actions, and hence the Fibonacci ratio is set to provide amazing results when used properly. 3. How does the Market works?: Have you ever seen a c? So how does it work? It has two sides for people to set, and the side with the most read vents or pushes the seesaw in their direction. Like, let us suppose that there are eight people with same weight of, let us say 80 KG. Now on one side there are six people and add another. And there are two on which side? When this is opened and will obviously move down to the site where data, more people. Now, many of you may be wondering why am I talking about seesaw while we are learning about forex or what does it have anything to do with 4X? Well, the tenders to the working of seesaw and forex are very much alike, dislike the seesaw in forex. There are two different parties, the buyers and the sellers. The pie p that dominates or puts more weight, vents and drives the price in their direction. Like let us say if at any point in the market the buyers are more, the price will move up. And f, at any point in the market, the seller's ammo, the price will move down. Now, what will happen if there are four people each on both sides? The CSR will get stuck in the middle. It won't go up, neither it will go down. The same thing happens with 4X. Buyers and sellers are in equilibrium. The market moves sideways, just like the seesaw gets stuck in the middle. The market is most of the time moving in any particular direction, but sometimes the buyers and sellers are in equilibrium, so the market moves sideways. So whenever you see a chart in which the price is moving up, that tells that the buyers are in control. And whenever you see a chart in which the price is moving down, it suggests that the sellers are in control or the price is moving down. And whenever you see that the market is moving sideways, it tells us that the buyers and sellers Both are in equilibrium. The reason why we're learning this, that's because there are times when Fibonacci retrenchment works the best. And there are also times when Fibonacci replacement doesn't work at all. And only by understanding how the market moves, we can understand vantage will walk and when it doesn't so that you can feed when Fibonacci doesn't work and capitalize when it does. And this thing will also be important for achieving consistency for the strategy. Because the thing is, anyone can win one or two or let us say ten traits. But you are not here to do that. You are, you are to be a successful forex Taylor. And for that, you need long-term goals and be consistent with your results because someone doesn't become a great Forex trader, but flipping accounts or winning five to ten traits, they become great by doing it consistently over and over again. And for that, you need to understand each and every aspect of the strategy you are using. You should know when to capitalize, and you should also know when to stay away from the market, phone call. So there are three different types of market. The appending market, that downgrading market, and the ranging market. Now, many of you may already know what these markets are and how they look. But for those who don't know about it, uh, market is said to be up, trending, vendor price moves up and it looks something like this. The ratio keeps on moving in a single direction. Amalgam is downgrading when the price moves down. And it looks like this, the price keeps on moving down continuously. And a market is ranging when the price moves sideways, like here, you can see that the market is acting like it is trapped between these two walls. So this is arranging market. Fibonacci's replacement only works when the price moves in any one direction. That is, the trending market, like in an operating market and a downgrading market and enraging market, you have to be very, very patient because it is valuable to be challenged a lot and it is where people lose a lot of money. So let us see how to know if arranging Margaret has finished and we can finally resume using Fibonacci replacement enraging market. The price usually behaves like it is trapped between two volts. And this is not, and it is not able to move up or down. Usually oscillates between these two worlds. And then it breaks past any of the words. Only then we get a signal that the price can now again be moving in any one direction. And we can finally use Fibonacci replacement. So in arranging market, we have to wait for the price to break the range. And then when it does, we can continue looking for traits again. Now, again, this was just a basic understanding of how the market works and how it moves. But who use Fibonacci properly, we need to have an in-depth knowledge of the workings of the market. And we will learn that in the next video. 4. Understanding Highs and Lows: In my days when I was just introduced to Forex industry, I was attending a seminar in which the trader was talking about higher highs and higher lows and lower lows and low house at that time, I was not able to understand the need to learn about highs and lows and what does it have anything to do with 4X feeling like, how can it help us? The strategy that I learned at that pain didn't have anything to do with highs and lows. And the mentor told me it's just a basic thing every 40 cellular should know about. But as I invested my months and years in trading, I came to know that highs and lows, some of the most important things in trading. Many readers don't give much importance to highs and lows and they rarely use it in therefor extremely. But if you ask me, it is one of the most important things for me. And I use it almost every day because it gives me a clearer view of the market and helps me in my technical analysis. There is a very famous and one of the most successful trader at backorder. And then interview, he was asked about his secret of successful trading. Out of all the secrets he told one secret, blew my mind away. He said that the trend is your friend, except at the end where it bends and it is the trending market where I made most of my profits. And Euler used to do is follow the trend. And that's it. He believed that if at reader follows trend properly, he would win most of the time, except at our trend changes, highest en Loos play an important role in understanding trends. It is one of the fundamentals of it. And it also helps us to understand when a tremendous about to end and ready to bend. So let us see how can highs and lows help us to understand the market correctly? First, let us start by understanding water highs and lows. How are they formed? And in the end, I will tell you how to use it with your technical analysis. So in the previous video, we learned that there are two parties in the Forex market, the buyers and sellers. And whether the market moves up or it moves down, it happens because of the buyers and sellers in the market. Like when there are more buyers in the market, the price moves up. And when there are more sellers in the market, the price moves down. Now as there are millions of different buyers and sellers in any market, all will get in and out differently as per their own needs. Like let us see a 100 traders entered abide rain nearby this level. Now out of those, a 100 different readers will get out differently and also new sellers meet endo. And this will cause a temporary momentum shift in the market and cause the price to move or begin a correction. After the price has done correcting, it will again move up. If the party dominating earlier is still in power and the cycle will continue causing the price to trend and create a series of highs and lows. So let us now try to understand this correctly. Let us see from this level, the buyers jumped him. So as buyers are more than the sellers, the price will move up. Now, as the base is moving up, different buyers and sellers will get in and out at a different level. So let us see at this point a bunch of buyers caught out or seller scheme and this will cause a slight momentum change in the price will move down. If now the bias still have the control of the market, the price will start to move up, and this time it will move above this level. So this was hello from greater price moved up. Then this was the first time. And then when the place retrace or corrected, it will be our high or low. And when this price move above this level, it will create a new high. Now, as this I is higher than the previous one. It will be our new higher high, also vented again, moves down and stays above the previous high or low. We will get a new high or low. And this is how the plays moves most of the time in a trending market. Now, if a market is upgrading, the price creates a series of higher highs and higher lows. If a market is downgrading, then the price creates a series of lower lows and low highs. And therefore, if again read the highs and lows of the market correctly, we can easily find out entry points to write any trend. So let us take some examples of life for next chart to understand it correctly. Yeah, on the art enzyme D one, our chart from this level, the market started an apprentice. So let this be our low. Now, when the price moves up and then correct and move above it, this will be our high, this will be our higher law, as this law is higher than the previous one. Now, as the plates move above this high, this will be the new higher high and a new hire loop. And you can see that in an appending market, the price is creating continuous higher highs and higher lows. So the price moves in the same way until it bends. And the price again gives us an indication when the trend has changed or is changing. You just need to observe the price character. So how to spot if their kindness about to burn or a momentum shift has happened. So let's quickly jumped to the previous operand examples. To understand this, let us assume at this point, sellers jumping price created a new high or low. But this time, the price could not move above the previous high betas and could not create a new higher high. And it stayed at the same level or even below that level. And then moved below the higher law, that is this level and created a new law which would now be a lower low, as this law is lower than the previous loop. So when something like this happens, it tells us that there has been a momentum change in the market and that that trend is ready to bend. Now, let us move to the chart and see if this thing really works. If you look at this pair, the market was trending up and creating continuous higher highs and higher lows. But at this point, the price could not create any new hire, hire as this was the last higher, high, and then the price clear data high or low. But then the price could not move about and create a higher. And it dropped down below the high-low and created a new low and low telling us that there has been a momentum shift. And you can see after this, the price started to move out and created lower loss and lower highs. Again, if you look at this downtime, you're, the prize was creating a series of lower lows and lower highs. And at this level, it created a final low-low. And then the price moved above the previous low, high and created a new higher high, indicating that there has been a momentum shift and then the market started to move up. They say, price tells you everything. You just have to observe carefully. Now, this thing is going to be very important for our strategy. And I recommend you to go through this video at least twice and practice as much as possible. See you in the next video. 5. How to Draw Highs & Lows: In the previous video, we learned about highs and lows and how can it help us to find trends, but understanding is just a part of the process to users. You should know the right way to do it. And there has been a lot of confusion about the right way to draw swing highs and swing lows. Also, there are a lot of questions regarding this topic. Like many of my students ask me, do we need to consider the risks or do we need to exclude the risks? And how do we observe the momentum change in the market? So let us understand this one by one. So what is the right way to draw highs and lows? The very first step is to look at charts and find the direction of the market, which you like. Is the market moving up or is it moving down for that? What do you have to do is select whichever time frame you want and then zoom out, observe in which direction the market is moving like here on this chart. If we zoom out, we can see the current direction of the market is up now. Always remember, if the market is up trending, you have to look for high highs and lows. And if the market is down trending, you have to look for lower lows and lower highs. So in this case, the market is moving up. So we will mark higher highs and lows. So after you zoom out, the second step is to find the lowest point from which the market started moving up. Now, the third step is to look for the previous low, like in this case, our previous new high was this. And the low low was this. Like this was the lowest point in which the market moved. So now as we are finding higher and higher lows now, when the market moves above the previous level, we will get our first higher high and then when the market decreases, we will get our new higher. So this was our previous low high and this was the final level. But when the price moved above the previous low high, we got a new higher high as this high is higher than the previous low way. So this will be our higher high after this. When the price moves down and stayed above the lower level, we got a new higher level. So this will be a high low. And now we have to just keep on doing this. Look for a new higher high, which will be this, and then a high low. Then again, a new higher high and then a higher, this time a deeper retracement. So this will be the high low and then a higher high and so on. Now, again, if we look at this downtrend year, we will have to draw lower lows and lower highs. So for that first, what we will do is zoom out and then find the final high and the higher end down trending market. We have to just do the opposite of what we did in the opening market. So this will be our final hire, which is the highest point to which the price moved. And then this will be the final year, the price move below the previous high level. So this would be our low low. And when this time the price moves up over, it will be our new low as this time the price is not able to create a high and it's staying below the higher high. So this will be our low right now. This trend will only get confirmed when the price creates another new low, which would be over. You know, when the price goes below this low, we will get a new low value and when the price increases, we will get a lower. So this is how you draw highs and lows and up trending and down trending market. Now, there is a very common question my students ask me. Do we have to consider the VIX winegrowing, the lows? And the answer is absolutely. The VIX represent the lowest or the highest price, and we always have to include it while drawing highs and lows. Like if you observed when we took the example to understand the highs and lows, I always included highs and lows while marking them. The next question is how to observe if there is a momentum change or expect a reversal. And is it reliable now? Observing a momentum change or spotting reversal with this technique is very easy. If the market is up, trending and creating higher and higher lows, you have to wait for the market to make a lullo and aloha. And when this happens, you can expect that the market is going to reverse. And if the market is down, trending and creating lower lows and laws you have to wait for. Market to make a high and a higher and this can confirm the momentum change, or you can expect a reversal like it happened all year over year, the price was creating continuous lower lows and lower highs. And then finally from you, it could not create any new low lows and created a higher high and a high low instead. And then the price started to move. Now, talking about the reliability of this technique, it works best if you have mastered it, but you also need to have some other confirmations because the price sometimes create a deeper retracement in form of a short term and then continues to move in the previous direction like it happened. Or you you're the price was creating a series of higher highs and lows and hence was uptrend. But then from you, the price could not create any new higher highs. And we would have thought that the trend has changed, but it was just a deeper retracement. So these kind of traps are very common and you will get used to it when you practice this over and over again and become perfect. And it will take hours and hours of practice to perfect this technique. So make sure you practice it as much as possible as this simple, basic thing will help you a lot when you use the strategy which you are about to learn. 6. How does the Market Moves?: After learning highs and lows, there is more to the mechanism of the forex market and how it moves highs and lows would help you to understand the market and find the direction of it. But there is something that would help you with lacing entries and provide you with details about what's happening in the market. Like if you are writing a trend, it will let you know when you have to get in and then you have to wait patiently. So whenever the price moves up or down, you all know that it doesn't move in a straight line. It moves in a form of highs and lows. And these highs and lows are formed in a certain pattern of waves, which help us to understand the price and a better v. And this pattern of wave is called impulse and correction. The impulse is where the professionals make money and that correction is impatient raiders lose their money. And if you can identify inputs and correction correctly and to master it, it can do wonders to your trading. So the price moves up due to one simple reason, the imbalance between the parties, that is the imbalance between the buyers and sellers, which means when the buyers are more, the price will move up. And when the sellers are more, the price will move down. Now, even after the imbalance in the market, the price doesn't move in a straight line. And this is because different individuals trading in the market and each one has got a different mindset, different Psychology, and each one reads different. So there are different psychological levels in the market to which the traders react. And this causes the price to move in a particular pattern called as inputs and correction. So let us understand each one correctly. The price is said to be in an impulsive mode when the price moves powerfully in any one direction. So basically an impulse suggests that a single party controls the price or a single party controls the market. And the correction is just the opposite of impulse. Whenever the price moves very slowly sideways, it is called a correction. Correction basically tells us that both the buyers and sellers are fighting to take the control of the market. For example, imagined buyers are more than the sellers. So this will cause the price to move on. Now, imagine at some point, the buyers and sellers Gordon equilibrium. There's some sellers entered and now mode the buyers and sellers are fighting with each other to gain the control of the market. So yeah, whoever wins the fight will drive the price in their direction. A virus when the price will continue to move up. And if sellers, when the price will reverse or the price will move down. So finding out impulse and correction on the live chart can be very confusing. So I have created three golden rules or characteristics for each, which will help you to identify impulse and correction like a probe, the rules to spot the impulse are very easy. Rule number one has look for strong moves in any one direction. The easiest way to find impulse is to look for strong moves in any one direction, like, Oh, you're, in this example, the price is moving in an upward direction, and the movement is very powerful. Rule number two is, look for the same colored candles in an impulse, you will mostly see the same colored candles, like as I used, white candidates for a bullish and black candidates for a bearish MOOC. You will see when there is a bullish temples, there will be mostly white canvas. And when that is a banish embarrassed, you will see there is black colored candidates, like here. In this example, the price was moving down and you can see only the black colored cannons. Sometimes you may see mixed colored candidates, but then the impulsive Canada's will be the strongest ones and the others will be weak. Rule number three is, look for larger cannons whenever the price is moving impulsively, most of the time you will see or find larger canvass, like over here in this example, you can see that the price was moving down impulsively and the candles were larger. Now the rules through sport, the correction. The room of one as look for vk move sideways whenever the price is moving sideways and the movement is weak, that is, it is not able to cover much vertical distance. The price is said to be correcting. Rule number two is, look for mixed scandals whenever the price is decreasing or correcting that are basically a fight between the buyers and sellers. And so you will see mostly mixed candidates. Rule number three is small candles. During a correction, the movement will be very weak and so that candidates will be smaller, like in this example here you can see the price this moving sideways that are mixed colored candles and that candles a very small, indicating that the price is correcting. So the price is basically moves in this pattern of impulse and correction. And impulse is always followed by a correction, which is then again followed by a new impulse. And it is said that most of the time, the new impulse after the correction is in the direction of the first impulse, like here in this example and this upper trend, the price false moved impulsively Bennett character. Then again, it moved impulsively in the direction of the first impulse, which is the upward direction. Then again, you got to see an impulse, time correction. Impulse, then a larger correction that again and impulse. So you can see how the price moves exactly in the pattern of impulse and correction and how most of the time the impulse after the correction was followed by an impulse in the direction of the first impulse. So if you're able to understand and identify impulse and a correction precisely and find out when the collection is going to end or when the next impulse is going to begin, you can easily capitalize and when trades in forex. And this can be done with the strategy which I am going to teach you in this course. Thank you so much for watching. See you in the next week. 7. What is Fibonacci retracement?: Now we are done with all the basics which are important for using Fibonacci replacement. And in this video we will learn about Fibonacci replacement and we will also see how to draw it. Now, if you would ask the professional traders out there, which tool do they prefer the most for continuation and tricks. Most of them would say Fibonacci two placement Fibonacci replacement as even my personal favorite tool for sporting continuation entries or even writing a trend. The level of clarity it gives you as just mind-blowing. And I do not think any other tool or indicator is even close to it. Trust me, I'm not bragging about achievement and what it can do, but this tool is a total game changer. You just need to be able to understand what it does and how to use it precisely. So there is a very simple reason for a high burn rate. We'd get that using Fibonacci replacement. And it is the way the price moves, the plies always moves in a particular pattern, or we've called impulse and correction. We have already learned about impulse and correction in the previous videos. And if you have paid attention and have practiced it enough, you may have noticed that most of the time when the market is turning, the price moves in a form of impulse and correction. And not only this, when we learned about it, I told you that most of the time and impulse is always followed by a correction. And 60% of the time the inputs after correction is followed by an impulse in the direction of the force templates, like here in this example, we have an up trend and you can see how most of the time we get inputs after a correction and then an impulse which is in the direction of this force impulse. Now, many of you may be wondering why we are learning about impulse and correction. Again, imagine if you could actually find out when a connection is going to end and a new impulse is going to start, Wouldn't it be helpful for you or wouldn't you be able to ventilate or right, every time you see absolutely. Trading would be a lot easier for you. And the thing is connection and replacement are the same things. And the Fibonacci retreatment is used to find out went up, correction or replacement is going to end. And when a new impulse would begin, a Fibonacci, the treatment has certain levels to it. And traders believe that when the price reaches those particular levels, the price will reverse or the retreatment will end and a new impulse will start. So this is a Fibonacci retreatment tool and it has different levels toward like 0.2360.38 to 0.5, etcetera. Now out of all these levels, 0.3. eight to 0.50.608, other most used levels. And most of the time, the price corrects these levels and then gives an impulse. I feel that these three levels are the more reliable. So I keep only these three levels on my Fibonacci replacement charts. And out of these three levels, 0.06, 18 is my favorite. Like every day I use only this Fibonacci ratio to place a trade. And it is also called Golden Ratio. And I'm mostly tried to find trades on this level itself. Now, there is one big problem with Fibonacci replacement. Like many people have problem while drawing it. Like that is a lot of discussion about which we is the right way to draw Fibonacci replacement. Because to get good results, you need to draw it right? So there are two important things that you need to keep in mind while drawing a Fibonacci replacement level. The first one is you have to connect swing high to assume low or swing low to a swing high. The second one is, you have to distinguish between impulse and correction and then find out when a connection is started and then adjust the Fibonacci replacement accordingly. So let us try to understand this on a chart to draw a Fibonacci retries when our first step will be to find a trending market. Mark highest and lose. Like here, the market is up trending and creating a series of higher highs and higher loss. So we will first month the higher highs and higher lows. And then we will use the Fibonacci tool to connect the higher loop to the hierarchy in an opera lending markets. After we are done with connecting the high load to the higher high. The next thing we have to look after is their end correction going on because Fibonacci retreats and then is used to find the end of our correction. So you have to see that after connecting the high load to the higher high, is that a collection going on? And if there isn't an election going on, only then you can use Fibonacci retrenchment. Let's take another example. Oh, you're, the market is down to ending. So we will first mock lower loss and low highs, and then we will use the Fibonacci retreatment tool and connect the higher law to the lower loop. So we have to connect the higher law to the lower loop after you are done connecting after that, what do we have to do is look if there is a correction going on and if there is a connection going on through lead them, you can use Fibonacci retreatment. Good sport, when our correction is going to end and when a new impulse is going to begin. So I hope you understand everything. See you in the next video. 8. THE STRATEGY: Till now, we have learned about all the tools and basics you will need to use this strategy. Now, in this video, I will reveal that strategy before you. But before we move on to the strategy, there are a few things you should know about. This strategy is only used for riding the trends. That is, you can only use it in a trending market. So when you learn the strategy and use it in the real market, I want you to always remember that you have to use it in a trending market only and stay patient when the market is ranging. So to make it easy to understand, I have divided this psychology into four easy steps. So the first thing you have to do is to find the direction of the market. That is, if the prices moving up or the price is moving down. And the reason why we're doing this is that we have to always remember that the trend is our friend and we should not try to go against it. So if the market is bullish or appending, then we have to keep a bullish bias and look for buying opportunities. And if the market is down branding or perish, then we have to look for sulfates. Now to find the direction of the market, you can either use a trend line, Cormac, normal highs and lows, anyone would do. But he uprooted US trend lines for longer trends and highs and lows for shorter or smaller trends. So first we will zoom out and find the direction of the market visually, and then we will try to draw highest and looks. So let's zoom out first. Now your other direction is up. So let's draw highest them looks, this will be the higher high, then this will be the higher loop. And then again higher high and then a high loop. So the market is moving in form of highs and lows and edits creating higher highs and higher loss. Now, after you are done with this, we can move to the next step. After you are done, finding the direction of the market. The next step is to look for impulse and correction. And the reason why we are looking for impulse and correction is that whenever the market is trending, the price first moves in a straight line, then it correct, and then it again moves in a straight line and the price follows the same pattern of impulse and correction. So we are going to use the impulse and correction theory to understand what the price is trying to do. Like when we learned about impulse and correction, I told you that in the planning market, whenever we see an impulse end up correction, the next impulse is in the direction of the first impulse. So now we need to see if the prize is following the principle of impulse end correction. Like here. The impulse is followed by a correction. And then again, we are seeing an impulse in the direction of the force. So we have to see if after an impulse the price is connecting or not FDA prizes correcting. Then we have to move to the step three. So the third step is. Using Fibonacci replacement to find out the end of our correction after you found an impulse. And if then the price is correcting, all you have to do is draw a Fibonacci replacement for that, connect the swing heights to the swing laws in a downgrading market and swing lose to the swing high enough up trending market. We are going to use only three Fibonacci ratios, 0.3. eight to 0.5 and 0.06 one. So if you have more ratios, you can delete it as it may bring an unnecessary emotions like it could cause fear of missing out and also caused problems while placing stop-loss. So all we have to do is now take this tool, connect swing lu to the swing high. That is a higher law to a new higher height. The next step is to find extra confirmations like candlestick pattern or a support and resistance zones or any other chart pattern. We have to find some extra confirmations to get into portrayed as we can not only rely on Fibonacci replacement alone. So we have to try to support if the price is giving us any signs that the correction is about to end. Now, I do have the videos for all those conformation tools and you will learn about that after the strategy part is four. So the fourth step is to look for any conformation. Like, yeah, you can see that that is the support and resistance. And your in this case, there is a support and hence providing us with a confirmation that we need to enter a trade so we can enter our trade over u. So this is how you use this strategy. It is very simple and easy to use. And you also get a decent number of trades each day with a minimum risk to reward of one S22 on each trade. Now, there's a very important thing you need to know when using the strategy, when you use any trading strategy, there are times when it works and there are times when it does not work. The same thing is true. But this strategy as well, a wise trader, which when the market conditions are not suitable for strategy and capitalize when the market conditions are favorable. Again, when the market is already trending, this strategy helps you write it, but when the market is reaching, this strategy fails miserably. Also, when a trending market approaches or support or resistance zones and rejects it, you need to stay away from the market during this time. Step patient during such time, and wait for the market to either bleak the zone and given new high and a new correction or wait for the market to reject the zone and cheese the trend. What I mean is if you are into an operating market and then have the market approaches a resistance or any other important level. During such time, you have to read to see if the price breaks the level or the trend changes. And when you have a clear indication, only then start trading. Again. Like all your example, the price was up trending. And then finally, this resistance zone. During such time, the price can either break the zone for rebound from it. So we will wait and see what happens. Like here, the price rebounded and then started creating lower loss and low highs. So we will change our bias and try getting into cell dates also. And this another example, the price break paths above the zone. We will keep the same bias and look for the buy and 0s. What we are doing is we are waiting for the price to give us clear signs or show us clearly what's going on in the market. Because we have to always treat what we see and not what we want to see. So when using this strategy before entering a grade, try asking yourself, occupation and my trading, what I see or imitating what I want to see. And if you are trading, what do you see? That is what the market is showing you. Only then get into a trade. 9. Fibonacci + Confirmation #1: Hey, guys, welcome back. In the previous video, we learned about the strategy and I told you how you need to find some extra confirmations to place a trade. So the first type of confirmation is the support and resistance levels while the price is trending. It creates minus support and resistance areas, which can be very well used as extra confirmations while riding a train. And in this video, we are going to learn just how to do that. Now, for those who don't know what support and resistance are, support and resistance are the psychological levels to which the traders react. To put it simply, support is where the buyers enter the market and push the price up. And resistance is where the seller enters the market and push the price down. Now, to draw support and resistance, all you need to do is find areas where the price has been rejected from Blake or you and discharge the prices, rejected this area and moved up. So this will be our support and also the prices rejected this area and moved up. So this will be our resistance. Now, let's take some more examples of it. You're the price rejected this level a couple of times. So this will be the support area. So to draw it, we will just use the rectangle and cover as many weeks or Kendal's as possible. Just make sure that the zone should not be too big. Again, the price moved from this level a couple of times. So this will be our resistance zone. And again, to draw, we will use a rectangle and cover as many Kandos or WX as possible. Now let us learn how to use it as confirmation with the United Treatment. When the price is tending, it creates highs and lows. And while doing that, it creates certain psychological areas that are also cold as minus support and resistance suits. So we will follow the same steps that we followed in our strategy. Only in the fourth step we will use a support and resistance. So let's see how we do that. OK, so this is Chirino USDOT Daily Chart and I will show you how to ride that trend using our strategy and using support and resistance as a confirmation. So let's go step by step. So the first step, which we will do is we will find the direction of the market like is the market going to move up or is it moving down? So in this case, the market was moving up visually. So now the next step is to mark the highs and lows. Now we will mark the highs and lows. So let this be the low low and this be the lower height. So for the price to create a new high, the price have to move about this level. So when the price moves above this level, it will create a new high. So in this case, it moved above that level over you. So this will be the new higher high. Then a Hielo, then a high, a high low, then again a high high and a high low and the prices continuously moving like this. So let's zoom out some more. Then we have a deeper retracement over here. So this will be the final high. Then a Hielo, because it stayed above this level and then again, the price started to move up. So now the next step is to find impulse and correction for that. This will be our impulse, then a correction, then an impulse, then a correction, an impulse correction, then an impulse in the downward direction, then a correction, then this hole will be a correction and then again it implodes. So the next step is to draw Fibonacci retracement. So far that what we will have to do is connect a new Hielo to a new high. So this was the lower than the lower, low, high, high, low. So we will connect this to a new higher high. So this is our new higher high after this. When we are done doing this, what we have to do is we have to find a confirmation. So in this case, you can see from this level the price dropped down sharply. So this will act as a resistance. But now as the price moved above it, this resistance will now act as a support. So let's draw a zone from this level and just move it to the slope so you can see how the price is rejecting this level. And now it is acting as a support. So we will enter ORIO or we can also enter after the price rejected this idea over you and then the price started to move up. In this case, whenever we use it, when I give you our stop loss will always be below zero point six one each level. So it will be somewhere near you and that there will be to take profits, which you will learn in the trade management and how to set the stop loss and take over the system. But for now, our short term profit will be at this level. Now let's move forward as we are writing this, then we will just then again remove this and we will draw it from New Louhi to a new higher, which would be somewhat something like this. But here the price did not retries and that moved up then again. OK, so it is looking like the price was correcting, but then when the price came to zero one six one eight, we don't have any extra confirmations, so we will not end up with you. As you can see, there is no extra confirmation of what we can do is we can go to a lower timeframe and then look for any extra confirmation, like a candlestick pattern or something. But there is nothing like that on the daily timeframe. And then we can see how the price just give or deadbolts from you that again drop down to this support level. So when something like this happens and when we get a deeper retracement, what do we have to do is we have to start drawing the Fibonacci from the Forcillo, which would be over you after this. Just extend the zone like this and you can see how the price came to this level and then again moved up. So in this case, you would have around 17 percent to get a profit of 100 percent. So that is anywhere near one is two for one is too high risk to reward ratio. Now, again, when the price moves up, we will shift this from your to the new high, which will be this one will be the new high. So it will be like this. Then we have to look for any extra confirmation. So you're the price have dropped to this level, which will be our support, but then it is too sharp. So we will not be able to get into a trade for you so we can look for any other confirmations, like a PIN number or anything else. So this is how you write it trend using this strategy and this is how you use support and resistance to find some extra confirmations. I hope you understand everything. See you in the next video. 10. Fibonacci + Confirmation #2: Hey guys, welcome back. In the previous video, we learned how to use the strategy that support and resistance. The thing is, we cannot simply rely on support and resistance for extra confirmations. We need something more because the problem is we cannot always get support and resistance levels as a confirmation, sometimes the price Viet through Trend Lines and so many readers use friend lens as extra conformations. So in this video we will learn how to use Fibonacci, the treatment. But trend lines. Now when the price moves up or down, or when the price is trending, it reacts to a vertical line. And this vertical line acts as a support or resistance and helps our grader to write a trend or look out for a reversal. For those who don't know what trendline as. Our trend line is a vertical support and resistance that has a psychological influence over the mind of traders. And when the market is operating, the Pentland acts as a support and when the market is down, branding that resonate acts as a resistance. So let us see how a trendline looks and how to draw it accurately. There are two different types of grained lens, upward and a downward trend, late or turn lane whose slope is upward, is called an upward trend lane or abolish turn lane. And a trend line whose slope is towards down is called a downward or bearish trend line. Drawing translate accurately is very important because many readers draw it wrong. And then they complain that it doesn't work, but it doesn't work like that. For a ten ln to be valid, there should be at least two touch confirmations. And do schoolteachers should be in such a way that after a touch or after every touch, a new high as form, like considered, this is our trend line and the price is reacting to it. So for this timeline to be valid, it should give or touch, then create a high, then again a new touch, and then create a new height. And this height should be higher than the previous one. And only after these two touches and highest depend length will be confirmed and you can use it. So let us take some examples of trend lines on the chart. So this is x sub B USD. Now to draw a trend line in this chart, what you have to do is take this tool from your cold stream line. Now, connect it from the lowest point. Now here, tried to connect as much vexed order candles as possible, like this. So this timeline will only get valid when we have at least two conformations and two highs. Like, oh, you're the price touched, then moved up and moved above this height. So this will be the first touch and this will be the first time. Then again, the point came to the trend line, the second touch and then again move up and gave us a new high. So we have two touches and two highs. So this timeline is valid, as you can see up to that, the place came tell the client line, then it again moves gap and let us. Following the trend name. Now again, if we take this example from here, the price started to move up. So we will connect or start growing a trend line from this point. Now, what we will do is we will try to connect as much v_x or candles as possible. Like we are able to connect your two to three touches. So this will be the first one. Then it created a high, then it moved down and touched here. Then it again created high, it again touchdown. And again it created explain to create a high, and then it breaks through the trend length. So this is also a valid timeline at it has two touches and two highs. Again, over here in this chart, good. You're, the market was moving up. So we will try to connect as much point as possible with this trend line tool. So we'll start drawing it from this point and try to connect as much of X or candles as possible in a straight vertical line. So it will be something like this. So after we have grown, we have to look at is valid or not. So we know that for a time line to be valid, there should be at least two touches and two highs. So let this be the post high, then our touch, then a new high. So we have one touch, one high, then again a touch, and then again a high. So this clearly tells us that this is a valid term length. So the next time the price again came to this point and it moved up. Now that you know, what are ten lines and how to use it. Let us go to the chart and see how to use it and our strategy on how to use Fibonacci replacement with ten lanes. So this is how you draw a trend line. Now, let us see how to use trend lines with our strategy. That is with Fibonacci replacement. So the first step, our strategy will remain the same. That is to find the direction of the market. So visually, the price is now moving up. Now, the next thing is to mark highs and lose. Now, even if we are using trend lines to find the direction of the market, we will still use highs and lows because we will require it while drawing Fibonacci replacement. So this will be the low than a higher high than a higher low, high, high, high or low, and then again, a higher high. The next thing is to find impulse and correction. So this will be a small impulse correction, then impulse correction, then again impulse and then a correction. So now the next thing is we can draw a trend line. So for that, choose a trend line, then tried to connect as many weeks or candles as possible. So what we will do is we will just move it and we'll try to connect as much as weeks or candles as possible. So it will be something like this. So now we have to find if the trend line is valid or not. So in this case, this will be the first, the high, the second, the high than again, a touch them again. So we are getting two or three hizo and two touches. So this will be a clear trend line. The next thing is for riding the train, we will need to draw Fibonacci replacement. So we will just connect this lu to the new hire and see if there is something which we can use to end up. So the price is completely rejecting the trend lane, forming a candle pattern and then it is moving up. So again, we can also do so now we can also shift this. So we will end up over your, we will keep our stop loss below the trend line, somewhere near you. And then our take profit for state profit will be o. Now, let us see again if we can write this trend furthermore. So for that, we will just move this Fibonacci retrace friend from this law to a new height, which will be somewhere near you. That again, over your, the price is rejecting, kind of rejecting a trend line so we can enter Europe. But then the stop-loss will be below 0.608 level, somewhere near you. And our take profit will be at this level, it will be o for steak profit. So this is how you use trend lines as a confirmation with our strategy. I hope you understood everything. See you in the next video. 11. Fibonacci + Confirmation #3: Apart from support and resistance and trend lines, there is another confirmation technique that provides you with a very high rate and a very high risk reward ratio. And that technique is combining candlestick pattern with Fibonacci ratio. It is my personal favorite confirmation tool and goes very well with day trading. So in this video, we will learn how to use candlestick patterns with our strategy. Now, there are three different types of candlestick patterns that worked very well with our strategy. The NBA, the DOJ agenda sticks and the angle thing, candle sticks. Now for those who don't know what candlestick patterns are, candlestick patterns represent a current market scenario and when a certain type of cannibalistic is formed, it tells us who is controlling the market or what is happening in the market. And you can do all this just by looking at those standards. Tics, like a bullish pin bar represents that the buyers are controlling the market and a banish bar represents that the sellers are controlling the market. So now let us learn about the different types of candlestick patterns which we are going to use with our strategy. There are two different types of pain, but the first is bullish Spinoza and the second is bearish spin buck. The bullish pinball is formed at the bottom of a downtrend and it has a long lower wick and a small body like here you can see this is a bullish pinball. Here the body will be small and bullish and the vector will be very taught. The long Vecchio represent or indicates that the resistance of the buyers and the buyers are pushing the price high. Then next is the banish pink bar. The banish pin bar as just oppose it of the bullish pin bar. This pattern is mostly formed at the top of an up trend and it has a long neck and a small banish body. Like here. You can see this is a banish pinball app. You're, the body will be small and bearish, and the vehicle will be tall, yard the long vec indicates the resistance of the sellers and tells that the sellers are pushing the price lower. The next type of characteristic is a doozy candlestick. There are three different type of logic enters, takes the normal dodgy, the bullish 2G and the bearish 2G. A normal Du Ji candle sticks is formed when the opening brace and the closing price of the candle assay. That is, it does not have a solid body and it looks something like this. It tells us that there is an indecision in the market. So we have to wait for the next candidate to form, to enter a tree, like after a duty candlestick FOR bullish Canada's triggers form. Then enter a bitrate. And after a dodgy candlestick, if I'm bearish candle is formed, then enter a cell trade. The next one is the bullish 2G abolish do g is the same as normal duty. It's opening and closing price of the body are same. The only difference is that it has a very long lower wick. It looks something like this. It has a long neck and a small or nobody at all. It tells that the buyers are controlling the market and we have to enter a bitrate after it is formed. The next one is a banish 2G. It is just the opposite of the bullish 2G and indicates that the sellers are controlling the market. And we have to enter a cell trade after it is form. Like here, you can see it has the C opening and closing price and along the higher Vic. Now, the next type of candlestick pattern as my personal favorite, and let us call the angle firing pattern. There are two engulfing pattern, candle sticks, the bullish envelope and Python and the banish engulfing pattern. Now, when a candle ended its previous kind of totally, then it is said to be an angle shrink. And so basically a bullish envelope and girdle consists of two candles, that is a smaller candle, followed by a larger, kinda. Like here in this example, you can see a smaller bearish candle that is totally engulfed by a bullish Kanban. So this formation, It's called the Bullish engulfing chemical. Yeah, it tells us that the bias took over control from the sellers and the price can now move up. Now the badge envelope in Canada is just the opposite of abolish and Gulf and Kanban. Like here, you can see a small village candle, sturdily angles, but a bearish candle. This is called a banish engulfing candle and weekend enter a cell trade after the scandal is formed. So these are the few candles which we are using with our strategy. Now, let's go to the chart and see some examples and see how to user, but our strategy. So I recently took some leaflets on ADA itanium and cooled using the kinda confirmation. So I will break it down in front of you. So the first step, which we do is we just zoom out and find the direction of the term, like right now, ADA, that is skydive is in an obtained. So if we zoom out, we can see that the price is totally an option. So the next thing is to draw higher highs and higher loss. So in this case, this was the higher high, high, low, high, high, high, low, and then a higher high, and then the price was dropped this level. So after this, the next step was to use impulse and correction. This was the impulse, then a correction, then again an impulse and then a correction. So after that, what I did is I connected this low, the previous law to the new high which was over you. Then. I did not have any other confirmation or your leg. There was no support and resistance at this point, and also there was no ten ln. So I found that the price rejected the 0.06 18 level and gave us a bullish pinball. So I entered Julio and I kept the stop-loss below the wick of the pin bar. So now my force take profit will be at Level somewhere near 0169709. And the other will be much higher than that, which will be around 0.80 or 0.76 level. Another next year it is of Italian. The same thing was going on with Italian. Italian was also an, an up trend. If we zoom out, you can see that the Italian was totally in an operand. So first thing is to draw highs and lows. So this was the high, low, so this was the low and then a new high. So you can see that after this high, the price dropped and this level, and from your VE caught up in bar like this, rejected the 0.5. level, which was also the previous resistance, which is now acting as a support. And we also have a pinwheel entered POJO. And our first day profit will be around this level and the other one will be much higher. Now, again, I have entered von molted on gold. So let us see how I did that. Let us take few more examples of this. So let me first clear that chart. Okay? Now here, the price was an up trend because this was the high than a low, then high, then again ALU. So if we just connect this point to the new high, like we don't have anything else away or like there is no major or even a minor support level warrior. But then the price dropped till this level and then record a engulfing kinda like if you look out at this area, the previous candle is totally engulfed by a new foolish kinda. So we will enter OEO and then we will keep our stop-loss few pips or few percentage below the scandal, which will be somewhere near you. Again, if we look at this chart on the four hour timeframe in this example, let us say this was the high, the previous higher than a low, somewhere near you. And then again a hub. So if we just draw a Fibonacci replacement level from the previous load to a new high. You can see, oh, you're the place rejected the 0.5. level. And then we have a duty candlestick at this point. So we will read for the price to create a new kind of after a DAG. So after this, the place created a bullish candle. So we will enter a bitrate over here and we can keep, I'd stop loss few percentage below this, or we can keep a safe stop-loss few percentage below the 0.06 18 level. And our first take profit will be neo 0.3. for A25, which has this level. And the new day profit or the aggressive take profit will be much higher. So this is how you enter into threads using candlestick patterns as a confirmation to I hope you understand everything. See you in the next video. 12. Trade management: Only trading this. After two to three years of trading, I finally started winning tickets consistently. I was doing good vec trading, but ten was something I was having trouble with. I was not able to capitalize on the dates I talk To put it simply, I was having trouble with setting take profit and stop-loss. At first, Vanna used to send that take profit. Trade used to be in profit but ten, without hitting my take proper, it used to go and loss or end up being a break-even. I thought that I might be setting too big or too unrealistic take profit. So I started using a smaller takeover, but this time the price used to hit my take profit and then used to go to the level I taught. It will move up to. At that time, nothing was working for me and it was all very frustrating. So I started finding these to title this, and then I finally found one. I thought, instead of placing a single trade, why not reduce the position size into half and take two treats instead? And by doing this, I was able to keep two different tape preferred for a single grade. One was conservative and another one was aggressive and made sure that even if the trade goes south, I will take some of the take profit from the tree. And if that read goes where I wanted to, then I will be able to write it. So it was a win-win for me. I was able to improve my reward by keeping the risk that this system of placing two grids worked very well for me and I call it that to trade system. Now, let us learn how to use the 2D grid system and also how to set a take profit and stop-loss fostering has the stop-loss do put on any day using the strategy will always be below the 0.06 18 Fibonacci ratio, no matter if you enter the data at 0.832 or 0.5 or 0.600811, the stop-loss will always be a few days or few pips below the 0.06 1811. Now, as we will be using that to trade system, we will use to take profits conservative and aggressive. The cancer rate of take profit will be a few pips below the 0 level and the aggressive take forward will be much higher than that. So let us see how to set the aggressive take profit. Let us suppose you entered our trade at 0.06 18 level over here. So to set the take profit, all you have to do is move the Fibonacci from the Swing low to the Newsweek glue. And then your take profit will be at the zero-level. Now, let us take a few examples to understand the stop-loss Kay Crawford and the tutoring system accurately. So let us say you decided to write this trend using our strategy. So for that, what you will do is you'll take the Fibonacci tool and then connect this law to the new high. Now and this entry, you will get the entry and 0.382 level as dead as a support. So even if you end up at 0.38 to level, your stop loss will be below 0.608 level, which will be somewhere below this area. It will be near you and your false take profit will be at this level. Now, talking about the next take profit, what do you have to do is just shift this Fibonacci from death blow to the new law like this, and this will be your new take of it that has the aggressive take profit. So as you can see, the price times the 0 level, and then it dropped down and then it again moved up. So this is how you have to set, stop loss and take profit. Now, again, let us take few more examples. Let us say after this the place move to this level and created a new high. After that, the place came to 0.06, 18 levels. So let us say you enter eoyo after the scandal. So even this time, your stop loss will be few percentage below the 0.06, 18 level, somewhere near here. And then your first take profit will be over your cube apps or few percentage below the 0 level for the aggresive take profit. What you have to do with just, again, shift this from the previous law to the new high-low. And then your take profit will be few pips below the 0 level. So this is how you said that take Crawford and stop-loss and this is how you use that to date system. I hope you understand everything directly. Thank you so much for watching. 13. Risk Management: No matter how good of a technical analyst you well and how accurate your entries or if you are not good at risk management, you will not be a successful trader. Because success and trading does not depend upon your technical analysts are skills that need a perfect balance between the technical skill, the money and risk management, and also how you manage your emotions and trading. You will always be challenged emotionally and mentally because the market moves in such a way where it creates a kind of illusion in the mind of a trader. It will many times make you feel like this trade is a winner and no one can stop me from winning it. Further, it may make you believe that ignoring risk management for this trait would matter. Also many a time when you are continuously winning rates, you will feel like you're on the top of this world. And the market moves according to you and does what you want it to do. And this probably will make you overconfident, greedy. And this is where you will mess up with your account. If you are not using a proper risk management plan, a great trader as not a future predictor, the only difference is that he manages his traits and risk in a significant way. And no matter how many consecutive wins he has, he never ignores the Risk Management Plan. So that is a very simple risk management principle which you should use while trading. And there is no rocket science involved in it. And it's very simple math. All you have to do is only this one to 5% of your account or trade. If you have a small account, you may risk around three to 5% portrayed. But if you have a bag or a large account size, I recommend you to use only one to 2% portrayed. And the total number of grids usual place at a time should not exceed more than two or three being the max. Now, the market is full of opportunities, and many times it may happen that you may get many opportunities at a single time. And during such time, you need to control your greed and follow the rule that you are not allowed to open more than two to three traits at a single time. And another thing you need to use this diversification, diversification as magic. It helps you reduce the risk of loss and exposes you to more opportunities. So always diversify your account and at a single time do not enter more than one trait on a single asset. And instead, look for trades on different asset.